A social media company majority owned by newly-elected US President Donald Trump is reportedly in talks to acquire Bakkt, a crypto trading and custody company backed by Intercontinental Exchange Inc.
The Financial Times quotes ‘two people with knowledge of the conversations’ reports that Trump Media and Technology Group, which operates Truth Social, a microblogging platform, is in advanced stages of talks to acquire Bakkt for an undisclosed sum in an all-stock deal.
As of the market close on November 18, Trump Media & Technology Group Corp (NASDAQ: DJT) had a market cap of $7.12 billion, while Bakkt Holdings Inc (NYSE: BKKT) had a market value of approximately $402 million.
The Financial Times reports that Bakkt’s crypto custody business, which has struggled to gain a foothold, has been left out of the talks and will likely be wound down.
In June this year, reports emerged that Bakkt had reportedly been working with a financial advisor and was exploring the possibility of a sale or a breakup. Bakkt was founded in 2018 and went public in 2021. Intercontinental Exchange, the parent company of the New York Stock Exchange, owns 55.6% of the crypto company.
Trump Media and Technology Group’s reported interest in a potential acquisition of a crypto company comes just months after the US president-elect launched decentralized finance (DeFi) project World Liberty Financial. Before the launch, World Liberty Financial stated that its mission was to increase DeFi adoption worldwide.
“Our mission is crystal clear: make crypto and America great by driving the mass adoption of stablecoins and decentralized finance. We believe that DeFi is the future and we want to make it accessible and secure for everyone.
By spreading US-pegged stablecoins around the world, we are ensuring the dominance of the US dollar continues, securing America’s financial leadership and influence on the global stage.”
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