Bakkt Holdings Inc. (BKKT) saw its stock price soar by over 162% on Monday, closing at $29.71 after news broke that Trump Media and Technology Group (DJT) is in advanced talks to acquire the crypto exchange. Shares continued to climb in after-hours trading, jumping another 16.43% to $34.59. Trump Media, which is majority-owned by Donald Trump with a 53% stake, is reportedly in discussions for an all-share deal to purchase Bakkt, which is owned by the Intercontinental Exchange.
The news sparked excitement in both the crypto and stock markets, as Bitcoin has gained around 30% since Trump’s recent election win, with his campaign pledging support for the crypto industry. The potential acquisition would mark another step for Trump in the world of crypto. He has already licensed his image to several NFT collections and is backing his family’s crypto project, World Liberty Financial, where they stand to earn a 75% share of the fees.
Despite Bakkt’s stock surge, the exchange has struggled to turn a profit and its crypto custody business has not performed well, which Bakkt plans to wind down. The Financial Times also noted that this part of the business wouldn’t be included in the deal with Trump Media. If the deal goes through, it could open the door for Trump to create a strategic Bitcoin reserve. However, this would likely require congressional approval.
One expert speculated that Trump could use Trump Media and Bakkt as a special purpose vehicle (SPV) to set up a Bitcoin reserve without needing approval from lawmakers. The future of this deal is still unclear, but investors are clearly optimistic about the potential impact on both Trump Media and Bakkt.