Following the announcement, Trump Media and Bakkt shares (BKKT) soared with the price of Trump Media shares skyrocketing by 16% to $32, and Bakkt’s by 162% to $29.
In early 2024, the crypto exchange said in a filing with the U.S. Securities and Exchange Commission (SEC) that it might not be able to continue as a “going concern”. Also, Bakkt has been considering its potential acquisition by working with financial experts for advice. The cryptocurrency company is also weighing a breakup of its business, according to reports in June.
The New York Stock Exchange had warned Bakkt that its common stock was at risk of being delisted. This is owing to board changes at an average below the exchange’s $1 per share minimum for at least 30 consecutive trading days. Bakkt was established by Intercontinental Exchange, which is also the parent company of the New York Stock Exchange.
Kelly Loeffler, a former CEO of Bakkt, is the co-chair of Trump’s inauguration committee and married Intercontinental Exchange CEO Jeffrey Sprecher.
However, she resigned as Bakkt’s top executive in 2019 after Georgia Governor Brian Kemp appointed her to the U.S. Senate seat after Senator Johnny Isakson resigned due to health reasons.
Following the appointment of its current CEO Andy Main, he announced that the proceeds from a capital rise, plans to reduce expenses and other related cost savings had “alleviated the conditions” that raised concerns about Bakkt’s future.
In its Q3 2024 report, Bakkt published a total revenue of $328.4 million including an operating loss of $27.4 million. Though it represented a 48% improvement from the previous calendar.
For TMTG, it has seen its market value rise and fall by billions of dollars in the runup to this year’s presidential election. Its market value is still above $7 billion despite reporting a net loss of $363 million and revenue of $2.6 million this year.
According to its latest fiscal quarter report, the TMTG still holds nearly $673 million in cash and cash equivalents.
Trump proving points as “crypto candidate”
The pre-acquisition of Bakkt by Trump’s group has proved his plans to take a full decider in the cryptocurrency world. During his campaign, Trump positioned himself as the “crypto candidate”, embracing digital currencies on multiple fronts, such as accepting donations in various crypto assets, signaling his acceptance of the burgeoning sector.
After the crypto-friendly Republican election victory, the crypto market has gained more strength following his plans during his election campaign.
In addition, he also revealed his plans to fire the United States Securities and Exchange Commission chief, Gary Gensler if he is elected over his unclear and stringent policies for the crypto industry. However, Gensler has been rumoured to be on his way out before Donald Trump’s inauguration next year.
At a Bitcoin conference in Nashville, Donald Trump expressed that he was going to make the United States the crypto capital of the world. As part of his plans, he pointed out the possibility of establishing a crypto reserve that will be used to cover the United States’ $36 trillion debt.
His victory at the US election has also seen the value of Bitcoin (BTC), the world’s largest cryptocurrency by market cap, to multiple all-time highs in the span of weeks.
