In yet another twist in U.S. President-elect Donald Trump’s sprawling financial empire, Trump Media & Technology Group (NASDAQ: DJT), the parent company of Truth Social, is reportedly in advanced talks to acquire Bakkt Holdings Inc. (NYSE: BKKT), a cryptocurrency trading platform.
Truth Social, launched in 2021 as a “free speech” alternative to mainstream platforms, has struggled to gain substantial traction. According to Similarweb, the site averaged just 646,000 daily visits in November—a drop in the bucket compared to Elon Musk’s X (formerly Twitter), which sees 155 million daily visits. Despite this limited reach, TMTG boasts a staggering $6 billion equity valuation, though the company generated a paltry $2.6 million in revenue this year.
Enter Bakkt. Acquiring a cryptocurrency trading venue would ostensibly allow TMTG to diversify its offerings beyond a platform largely used by Trump loyalists and conspiracy theorists. But skeptics argue this could be another instance of leveraging speculative markets to inflate value without delivering substantive results.
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Bakkt
If Bakkt were a crypto success story, it might justify TMTG’s interest. Instead, Bakkt has been a case study in unmet expectations and financial misfires. Created by Intercontinental Exchange (NYSE: ICE), the company was pitched as a revolutionary platform for integrating cryptocurrency into everyday transactions. Remember the hype about paying for Starbucks coffee with Bitcoin? That vision has yet to materialize.
Since its public debut in 2021, Bakkt’s financial performance has been underwhelming. Its crypto custody business—intended to store digital assets like Bitcoin and Ethereum securely—has floundered, generating just $328,000 in revenue while posting $27,000 in operating losses last quarter. Even worse, Bakkt narrowly avoided delisting from the New York Stock Exchange this year by executing a 1-for-25 reverse stock split to boost its share price. Now, its survival hinges on an acquisition lifeline.
“Bakkt is a crypto startup that desperately needed a rescue. And Trump’s media group might just be reckless enough to think this is their ticket to the big leagues,” quipped Joey Politano, an economic analyst and commentator.
The Bakkt story is as much about politics as it is about finance. Bakkt’s first CEO was Kelly Loeffler, the former U.S. senator from Georgia who lost her seat in 2021 after allegations of insider trading during the COVID-19 pandemic. Loeffler is married to Jeff Sprecher, the billionaire CEO of Intercontinental Exchange, which still owns a 55% stake in Bakkt.
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Loeffler remains deeply connected to Trump’s political orbit as co-chair of his upcoming inauguration committee. Critics argue that the deal reeks of cronyism, pointing out the intertwined personal, political, and financial interests at play.
Trump and Crypto
Trump’s relationship with cryptocurrency has been as inconsistent as his stance on nearly every other issue. While he once called Bitcoin a “scam” threatening the U.S. dollar, he’s recently pivoted to embrace the crypto market. This shift coincides with his promotion of World Liberty Financial, a crypto venture tied to longtime associates, from which Trump reportedly earns hefty fees.
The timing is curious. Crypto markets have rallied since Trump’s 2024 election win, with Bitcoin jumping more than 30% on speculation that a Trump administration could enact favorable legislation for digital currencies. Is this a genuine business pivot or a calculated move to leverage political influence for personal financial gain?
News of the potential acquisition sent Bakkt’s shares soaring 162%, while TMTG saw a more modest 16.7% increase. But market volatility has defined both companies. TMTG’s stock, formerly traded via Digital World Acquisition Corp., has been a playground for retail investors speculating on Trump’s cult of personality rather than underlying business fundamentals.
“This feels like a pump-and-dump waiting to happen,” said an investor on Reddit’s WallStreetBets forum. “It’s like if Theranos and FTX had a baby, but that baby was raised on a diet of MAGA hats.”
If the deal goes through, TMTG’s entry into crypto could herald a new chapter for the company—or a spectacular failure. By acquiring Bakkt, TMTG gains access to crypto infrastructure that could theoretically be integrated into Truth Social, adding trading or wallet services. However, given Bakkt’s dismal track record and Truth Social’s lack of substantial activity, the merger raises more questions than answers.
The approach is emblematic of Trump’s business style: acquiring struggling assets, rebranding them with his name, and relying on publicity and hype to drive perceived value rather than focusing on tangible results.
While Trump supporters might see this as a bold venture into the future of finance, critics view it as yet another example of overpromising and underdelivering. Whether this gamble pays off or implodes spectacularly remains to be seen. For now, it’s a headline-grabbing play—something Trump has always excelled at.
Information for this briefing was found via Financial Times and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
