### Trump Media & Technology Group Nears Acquisition of Cryptocurrency Firm Bakkt

President-elect Donald Trump's social media company, Trump Media & Technology Group (TMTG), is reportedly in advanced negotiations to acquire the cryptocurrency trading platform Bakkt in an all-share deal, according to individuals familiar with the discussions. The Financial Times reported the potential acquisition on Monday, though the valuation details remain unclear. Bakkt, led previously by former US Senator Kelly Loeffler of Georgia, had a market capitalization exceeding $150 million as of Monday.

Loeffler, who served as a US senator from Georgia towards the end of Trump's first term, was a known supporter of Trump and prominently featured her alignment with him in her re-election campaign. Before her political career, Loeffler was the first chief executive of Bakkt and held a marketing executive position at Intercontinental Exchange (ICE), which owns the New York Stock Exchange and holds a 55% stake in Bakkt. Loeffler has been appointed by Trump to co-chair his inaugural committee. Her husband, Jeff Sprecher, is ICE’s founder and CEO.

The news of the potential acquisition caused Bakkt's shares to surge over 162% on Monday, gaining an additional 3.3% on Tuesday. On the other hand, TMTG shares rose by more than 16% before falling by about 9% on Tuesday. TMTG declined to comment on the speculation, and Bakkt stated they do not comment on market rumors.

The acquisition represents Trump's latest venture into the cryptocurrency space, following his campaign portrayal as the pro-crypto candidate. After Trump's win, Bitcoin and other cryptocurrency stocks saw significant increases, fueled by investor expectations that Trump would relax regulatory constraints on the industry.

Despite the ongoing talks, Bakkt has struggled financially since going public in 2021. The company’s crypto custody business reported operating losses of $27,000 under revenues of $328,000 for the three months ending September 30. Sources indicated that this segment is likely to be scaled down and excluded from the deal.

TMTG, which operates the social media platform Truth Social, has also faced financial challenges. The company reported a $19 million net loss for the period ending September 30, with revenues of around $1 million. Truth Social, despite high trading volatility and interest during elections, has lagged behind other social platforms. As of May, Truth Social had about 76,000 daily active users in the US, starkly contrasted with Elon Musk’s X, which boasts around 100 million users in the same market.

Trump, as the majority stakeholder in TMTG, stated he would not sell his shares despite the stock's erratic trading patterns. The company's fluctuating performance has pushed its market capitalization to approximately $6 billion.