Trump social media group in talks to purchase crypto trading platform Bakkt

The Trump Media and Technology Group (TMTG) is reportedly close to finalizing a plan to purchase the cryptocurrency trading platform Bakkt.

Two people with knowledge of the talks told the Financial Times that TMTG, which operates Truth Social, is closing in on the all-share purchase of Bakkt, which is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. While the valuation under discussion was not clear, Baakt’s market capitalization was around $150 million Monday.

The outlet said that the deal, if successful, would "deepen" the President-elect’s move into the crypto market. This comes after he began promoting a new crypto venture by World Liberty Financial, and crypto markets have risen in the wake of his Election Day victory.

Trump retains a 53 percent stake in TMTG, which has a $6 billion equity valuation, and the stock has become one of the most actively traded stocks following his election. In the wake of the Financial Times’ reporting on the talks, Bakkt shares rose 162 percent, and TMTG shares were up about 16.7 percent. 

Bakkt has faced financial uncertainty since its launch, with the New York Stock Exchange still holding a 55 percent economic interest in the company. The company previously said that its crypto custody business would likely be wound down. Those familiar with the talks said that the crypto custody business, in which digital assets like bitcoin would be held on behalf of customers, would not be included in the deal. The outlet reported, "Bakkt is planning to build a trading platform for institutional investors."

The first chief executive of the company was Kelly Loeffler, a former GOP Senator for Georgia during Trump’s first term who is co-chair of the committee organizing Trump’s inauguration.