Recently, news about former President Donald Trump planning to acquire the cryptocurrency trading platform Bakkt has once again become the focus of the crypto market. This acquisition marks another important move for Trump in the cryptocurrency field, undoubtedly bringing new positive signals to the crypto market.
Trump's group plans to acquire Bakkt
According to insiders, Trump's media technology group (Trump Media & Technology Group, abbreviated as TMTG) is in the stage of in-depth acquisition negotiations with the cryptocurrency trading platform Bakkt. The news quickly attracted widespread market attention and drove related stock prices to surge.
As a globally renowned cryptocurrency trading platform established by the Intercontinental Exchange, Bakkt has long occupied a position in the industry. According to relevant personnel, it is currently unclear what the valuation under discussion is, but on Monday (November 18), Bakkt's market value was slightly above $150 million.
Trump's expansion in the cryptocurrency field is not accidental. During the campaign, he has publicly expressed support for cryptocurrencies on several occasions. He also promised to promote more friendly cryptocurrency regulatory policies, establish a presidential cryptocurrency advisory committee, and proposed replacing the current chairman of the Securities and Exchange Commission. This series of initiatives demonstrates Trump's great interest and confidence in the cryptocurrency market.
Bakkt stock price surged and triggered trading halt
According to the latest market data today, Bakkt's stock price soared over 162% yesterday (November 18) and triggered a trading halt, while the stock price of Trump's media technology group also rose by more than 16%. This rapid stock price increase reflects the market's positive expectations for this acquisition and indicates strong confidence from investors in Bakkt's future development potential.
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It is worth noting that this news has also driven the stock prices of other cryptocurrency-related companies to rise, such as MicroStrategy, which saw its closing price rise by 12.96% compared to the previous trading day on November 18.
Bakkt faced delisting
Bakkt is a cryptocurrency trading platform established in 2018 by the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, with the main purpose of creating a regulated global ecosystem for digital assets, listed in 2021. Bakkt faced the danger of delisting from the New York Stock Exchange due to its low stock price, which improved only after a 1-for-25 reverse stock split in April this year.
According to Bakkt's latest financial report released on November 14, the company's revenue for the third quarter of 2024 was approximately $49 million to $50 million, significantly up from the previous year, with the number of cryptocurrency accounts growing to 6.5 million, a year-on-year increase of 6.7%. The assets under custody grew by 85.5% year-on-year to $938.7 million.
Bakkt's President and CEO Andy Main stated, "Since the U.S. presidential election, we have seen a sharp increase in trading volume, thanks to favorable macro sentiment and rising cryptocurrency prices. As of November 12, our trading volume reached $279 million, surpassing October's $165 million in just 12 days."
Bakkt's parent company, the Intercontinental Exchange, is led by Jeff Sprecher, whose wife, Kelly Loeffler, was co-chair of Trump's inauguration committee, indicating a potential strategic relationship between Bakkt and Trump. This relationship lays a solid foundation for cooperation between both parties in the cryptocurrency market.
In addition, Bakkt's business scope is not limited to cryptocurrency trading; it also includes the development and implementation of cryptocurrency payment solutions and collaboration with traditional financial institutions. The company is committed to providing users with a more convenient and secure cryptocurrency trading experience.
Summary
The news of Trump's acquisition of Bakkt injects a strong stimulus into the cryptocurrency market, which has shown a positive reaction to this news. For Trump, this acquisition is an important attempt in the cryptocurrency field and a significant step in diversifying the business of his media technology group.
In today's increasingly competitive global cryptocurrency market, if Bakkt can be successfully acquired, it may gain greater resource support in terms of technological innovation and market expansion. Trump's involvement brings more policy support and market confidence to the cryptocurrency market.
