Bakkt Holdings Stock Loses Over Quarter Of Its Market Cap As Trump Media Announces Partnership With Charles Schwab

Shares of Bakkt Holdings Inc (BKKT) lost over a quarter of their market capitalization on Wednesday after Trump Media and Technology Group Corp (TMTG) announced a partnership with Charles Schwab (SCHW) in its bid to expand into financial services.

In November, the Financial Times reported that Trump Media was in advanced talks to buy Bakkt. Following the report, BKKT shares had soared 162% to cross the $31 mark.

Wednesday’s disclosure by Trump Media appears to have dampened investor expectations of Bakkt getting acquired by Trump’s firm.

Meanwhile, Nangi Research revealed a short position on BKKT.

“The thesis is straightforward—no need for a detailed report. With $DJT partnering with Charles Schwab, any potential acquisition of $BKKT is off the table. The recent spike in $BKKT's share price was purely driven by acquisition rumors,” Nangi said on X.

On Wednesday, Trump Media announced its board of directors has approved a financial services and financial technology strategy, which will include the launch of the financial services and FinTech brand Truth.Fi.

The company said that its board had approved the investment of up to $250 million to be custodied by Charles Schwab to diversify its cash and cash-equivalent reserves of over $700 million as of Dec. 31, 2024.

Trump Media anticipates that Truth.Fi products and services, including multiple investment vehicles, will be rolled out in 2025 as new agreements are consummated, funding levels are determined, and necessary regulatory approvals are secured.

Shares of the firm traded over 5% higher on Wednesday.

On Stocktwits, retail sentiment surrounding BKKT dipped into the ‘extremely bearish’ territory (11/100) from ‘neutral’ a day ago, hitting a year-low level. The move was accompanied by ‘extremely high’ retail chatter.

BKKT’s Sentiment Meter and Message Volume as of 12:58 p.m. ET on Jan. 29, 2025 | Source: Stocktwits

Stocktwits users expressed skepticism on the stock’s prospects following Trump Media’s announcement.

Meanwhile, retail sentiment surrounding Trump Media remained in the ‘neutral’ territory.

DJT’s Sentiment Meter and Message Volume as of 1:02 p.m. ET on Jan. 29, 2025 | Source: Stocktwits

BKKT shares have lost over 25% in 2025 and are down over 50% over the past year. Trump Media stock is down more than 6% this year and has shed 12% over the past year.

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