As Donald Trump prepares for a potential return to the White House in 2025, his influence in the digital asset space continues to grow. Recent reports suggest a bold new move that could reshape his growing crypto footprint: a proposed acquisition of Bakkt, the cryptocurrency exchange platform.
According to the Financial Times, Trump Media & Technology Group (TMTG)—the company behind Truth Social—is engaged in advanced discussions to fully acquire Bakkt. While financial terms remain undisclosed, insiders indicate that Trump is expected to retain a 53% ownership stake in the combined entity post-acquisition. The news sent shockwaves through financial markets, triggering dramatic stock surges for both companies.
Within minutes of the report’s release, TMTG (NASDAQ: DJT) jumped over 16%, reflecting sustained investor enthusiasm. Bakkt (NYSE: BKKT) saw even more extreme volatility—its shares surged over 163% and triggered multiple trading halts due to price swings.
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Bakkt’s Rocky Road: From High Hopes to Strategic Overhaul
Launched in 2018 by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, Bakkt entered the public market in October 2021 via a SPAC merger. It was initially hailed as a bridge between traditional finance and digital assets, offering services such as crypto custody, trading, and loyalty rewards integration.
Despite early backing from major players like Boston Consulting Group, Galaxy Digital, Microsoft’s M12 Ventures, and ICE itself—raising hundreds of millions in funding—Bakkt has struggled to achieve profitability.
In its most recent quarter, the company reported $328.4 million in total revenue but posted an operating loss of $27.4 million—a 48% improvement year-over-year. However, consistent losses have plagued its performance, casting doubt on long-term sustainability.
One key detail stands out: Bakkt’s regulated crypto custody business, licensed by New York state authorities, will reportedly be excluded from the proposed acquisition. In the three months ending September 30, this segment generated just $328,000 in revenue and suffered a $27,000 operating loss. Its removal signals a strategic pivot rather than a full-scale integration of Bakkt’s existing operations.
Bakkt’s stock had previously teetered on the edge of delisting due to prolonged underperformance. To avoid being removed from the NYSE, the company executed a 1-for-25 reverse stock split in April—a move often seen as a last resort for struggling firms. Despite this, investor sentiment improved slightly before the Trump-related news, with shares rising 15% the week prior.
Political Ties and Strategic Synergy
The connection between Trump and Bakkt runs deeper than business alone—it's interwoven with political alliances. Kelly Loeffler, former U.S. Senator from Georgia and co-chair of Trump’s inaugural committee, served as Bakkt’s CEO during its formative years. Her husband, Jeffrey Sprecher, is CEO of ICE and played a foundational role in launching Bakkt.
Though Loeffler lost her Senate seat in a 2021 runoff election to Democrat Raphael Warnock, her ties to both the Trump administration and the crypto industry remain significant. This network may now serve as a catalyst for renewed interest in Bakkt under TMTG’s ownership.
Trump’s broader engagement with blockchain technology has intensified in recent months. In September 2024, he launched World Liberty Financial, a crypto project featuring non-fungible tokens (NFTs) tied to American historical themes. Though criticized by some as more symbolic than functional, the initiative drew attention for blending nationalism with digital innovation.
Beyond branding ventures, Trump has made several pro-crypto policy promises during his campaign:
- Establishing a national Bitcoin strategic reserve
- Creating a regulatory environment favorable to cryptocurrency mining
- Appointing a new SEC chair sympathetic to digital assets
- Promoting blockchain adoption across federal systems
These proposals have resonated strongly with retail investors and crypto advocates alike.
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Market Reaction vs. Fundamental Reality
The surge in TMTG’s stock following election momentum highlights a growing trend: market sentiment driven more by political narrative than financial fundamentals.
Despite reporting only $2.6 million in revenue and a staggering $363 million net loss in the current fiscal year, TMTG carries a market capitalization exceeding $7 billion. This disconnect underscores the speculative nature of politically linked ventures in today’s investment landscape.
Similarly, Truth Social—TMTG’s flagship social media app—lags far behind competitors in user engagement. Data from Similarweb shows an average of 646,000 daily website visits globally, compared to X (formerly Twitter), which draws over 155 million daily visitors. Yet, TMTG remains one of the most actively traded stocks on U.S. exchanges.
This phenomenon reflects a broader shift: digital asset ecosystems are increasingly influenced by cultural and ideological movements, not just technological merit or economic viability.
Core Keywords:
- Cryptocurrency
- Blockchain
- Bitcoin
- Crypto exchange
- Digital assets
- Trump Media
- Bakkt acquisition
- Crypto policy
Frequently Asked Questions (FAQ)
Q: Is Donald Trump officially entering the cryptocurrency industry?
A: While Trump is not directly running any crypto business, his companies—particularly Trump Media & Technology Group—are making strategic moves into the space. The proposed acquisition of Bakkt and the launch of World Liberty Financial signal a clear intent to expand his presence in digital assets.
Q: Will Bakkt continue operating under its current name after the acquisition?
A: Details are still emerging, but there is no indication yet that the Bakkt brand will be retired. Given its regulatory credentials and infrastructure, it may serve as a foundational component of TMTG’s future financial offerings.
Q: What does this mean for everyday crypto investors?
A: Increased political endorsement of crypto platforms can boost market confidence and drive short-term price increases. However, investors should remain cautious and evaluate projects based on fundamentals—not just celebrity or political association.
Q: Could this acquisition face regulatory scrutiny?
A: Any deal involving a high-profile political figure and a regulated financial platform like Bakkt may attract attention from agencies such as the SEC or FTC. While no formal barriers have been announced, transparency and compliance will be critical.
Q: How might Trump’s proposed Bitcoin reserve work?
A: The idea involves the U.S. government purchasing and holding Bitcoin as part of national reserves—similar to gold. Proponents argue it would strengthen monetary sovereignty; critics warn of volatility risks and fiscal imprudence.
Q: Is Bakkt safe for storing cryptocurrencies today?
A: Bakkt’s custodial services are regulated by New York State’s Department of Financial Services (NYDFS), which provides a degree of oversight and security. However, users should always conduct independent research before entrusting funds to any platform.
The convergence of politics, media, and blockchain technology is redefining how value is created—and perceived—in the digital age. Whether this acquisition closes or not, one thing is clear: the line between influence and investment is blurring, and crypto markets are watching closely.
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