Trump Media & Technology Group (DJT) is reportedly in talks to buy cryptocurrency trading firm Bakkt Holdings (BKKT).
The stock of Trump Media, which is majority owned by U.S. president-elect Donald Trump and operates the Truth Social app that’s similar to X, rose 17% on news of the Bakkt purchase.
Shares of Bakkt increased 162% and trading had to be halted due to extreme volatility. Whether Trump Media actually buys Bakkt, and at what price, remains to be seen.
News of the potential Bakkt purchase comes at a difficult time for Trump Media, which has reported a $363 million U.S. net loss and revenue of only $2.6 million U.S. this year.
The company said in its third-quarter financial results that it has $673 million U.S. of cash on hand.
Donald Trump has become widely associated with cryptocurrency in recent months as he campaigned in support of digital coins and tokens.
Crypto prices have risen substantially since Trump was re-elected on Nov. 5 as investors bet on less regulation and wider adoption of digital assets.
Bakkt was founded in 2018 and most recently reported an operating loss of $27.4 million U.S., a 48% improvement from a year earlier.
In March of this year, Bakkt was warned by the New York Stock Exchange that its shares were at risk of being delisted because it was trading below the $1 U.S. per share minimum threshold.
In April, Bakkt executed a reverse stock split at a 1-for-25 ratio to artificially boost its share price. The stock of Bakkt is down 44% this year and currently trading at $29.71 U.S. a share.
Trump Media’s stock is down about 10% since going public via a special purpose acquisition company (SPAC) deal this March. Its stock is currently trading at $32.78 U.S. per share.
