rump Media and Technology Group is allegedly negotiating at an advanced stage to buy Bakkt, a popular crypto exchange.
The probable takeover has sent the stocks surging by 162%, indicating recovered investor interest in the company. This development comes when President-elect Donald Trump is working toward changing the current legal landscape for digital currencies in the U.S.
Bakkt Shares Soar Amidst Acquisition Speculation
Bakkt shares skyrocketed 162.5% to $29.71 at the close on November 18, the first trading day after the negotiations with Trump Media were announced. In after-hours trading, the stock rose further, as high as $34.59. Despite this latest surge, Bakkt's stock has had a tough year so far, still down close to 44% and about 97% from its October 2021 peak of $1,063. The exact terms are not yet known, but Bakkt is now valued above $400 million as the interest of investors grows.
Trump's Dual Role: Businessman/Political Figure
Trump's interest in Bakkt represents part of a general approach toward encouraging a friendlier environment for virtual assets. Previously, he has licensed his image for several NFT projects and backed World Liberty Financial, which proposed a Bitcoin venture.
Buying Bakkt might insinuate that Trump would hold a potential power-player position within the crypto space, maybe even finding a way to execute a strategic Bitcoin reserve. But that would be difficult to organize because, presumably, it would have to be passed through Congress.
Coinbase CEO Pushes Trump for Pro-Crypto Leadership
Coinbase CEO Brian Armstrong has been holding a string of meetings with Trump to go over key appointments to the Trump administration which will determine crypto policy. Armstrong let it be known that he favours Hester Peirce, aka "Crypto Mom," as one of the appointees to the position of SEC Chair.
He described Peirce as "smart, fair, and professional," saying her leadership might avail a friendlier regulatory environment for digital assets. This move also comes as part of Armstrong's broader efforts during the election cycle in which Coinbase invested heavily in candidates who back pro-crypto policies.
Potential Impact on the Cryptocurrency Sector
With a successful Bakkt purchase by Trump Media, Peirce as the eventual SEC Chair could clear the way for friendlier policy and heavier investments into the crypto space.
Analysts point out that Bakkt could be utilized for hosting Bitcoin in reserve as a way to circumvent some of the legislative hurdles and clear the way for Trump to be more outspoken about the cryptocurrency market. Investors and stakeholders alike will be watching closely, for such changes could mean a change in the relationship between the U.S. government and the cryptocurrency industry.
