Trump's Social Media Company Reportedly Nears Deal for Atlanta-Linked Crypto Firm Bakkt

Trump Media and Technology Group, the parent of Truth Social, is reportedly in advanced talks to buy Bakkt, a cryptocurrency trading company with deep roots in the Atlanta area. The Financial Times reported the discussions on Monday, citing two people familiar with the matter. President-elect Donald Trump holds a 53% stake in the media company.

The potential deal would link the incoming president to a firm with close ties to his Georgia supporters. Bakkt is publicly traded, though a large share of it is owned by Atlanta-based Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.

Former U.S. Sen. Kelly Loeffler, an ex-ICE executive, led the creation of Bakkt in 2018. She left the company in 2019 after Gov. Brian Kemp chose her to fill the remainder of the late Sen. Johnny Isakson's term. She lost her bid to keep the seat in 2021 but has stayed active in politics, founding the conservative turnout group Greater Georgia and donating nearly $5 million to Trump's campaign. She now serves as a cochair of his inaugural committee and could be in line for a role in his administration.

Loeffler and her husband, ICE CEO Jeff Sprecher, were the largest Trump donors in Georgia in the most recent election cycle. Both have remained allies of the president-elect.

The Financial Times said it is unclear how Bakkt would be valued if the all-stock acquisition goes forward. Bakkt did not immediately respond to a request for comment, and ICE and a representative for Loeffler declined to comment.

Investors reacted quickly. Bakkt shares had been trading at about $12 before the report, but by roughly 6 p.m. in after-hours trading they were changing hands at about $30.

The company's finances have been shaky. Earlier this year, Bakkt raised doubts in a regulatory filing about its ability to stay in business, warning that it did not believe it had readily available cash "sufficient to fund our operations for the (next) 12 months."

Trump's election victory has since boosted the crypto industry, and bitcoin reached an all-time high last week. Trump courted crypto traders during the campaign, promising to be a "crypto president" and speaking at the annual bitcoin conference.

Bakkt CEO Andy Main said last week that the company had seen "a dramatic increase in trading volumes driven by favorable macro sentiment and rising crypto prices" since the election. He told shareholders that trading volume in the first 12 days of November reached $279 million, already $114 million above all of October's total.

Bakkt also reported that third-quarter revenue climbed more than 60% to $328.4 million, while its quarterly loss narrowed from $51.7 million a year earlier to $6.3 million.