Bakkt Stock Jumps Pre-Market On Rumors Of DJT Acquisition: Retail Is Pumped

Bakkt Holdings Inc. ($BKKT) stock jumped as much as 20% in Tuesday’s pre-market trading after reports emerged that Trump Media & Technology Group Corp. ($DJT), majority-owned by President-elect Donald Trump, is in advanced negotiations to acquire the digital asset platform.

According to the Financial Times, the discussions involve a potential all-stock purchase of Bakkt as DJT looks to expand beyond its social media operations. 

However, the specific valuation under consideration was not disclosed, though Bakkt's current market capitalization stands at $192 million.

Bakkt, created by Intercontinental Exchange (ICE) — the owner of the New York Stock Exchange — has struggled to achieve profitability since its launch. ICE still maintains a 55% economic stake in Bakkt.

Bakkt has acknowledged the "rumors" but declined to comment, citing company policy.

Bakkt Holdings Inc. Sentiment and Message Volume on Nov 19 as of 8:00 a.m. ET | Source: Stocktwits

Retail sentiment around Bakkt has pivoted to ‘extremely bullish’ from ‘bearish’ a day ago, along with a massive uptick in chatter to ‘extremely high’ from ‘low’.

Retail investors on Stocktwits are divided on whether DJT’s alleged acquisition of Bakkt is genuine or just another pump-and-dump.

Stocktwits Poll on DJT's Rumored Acquisition of Bakkt on Nov 19 as of 8:30 a.m. ET | Source: Stocktwits

DJT, which operates the Truth Social platform, has been one of the most actively traded stocks on Stocktwits leading up to the 2024 U.S. presidential election, viewed as a proxy for Trump's electoral prospects.

The company’s third-quarter earnings report earlier this month showed an operating loss of $23.7 million, with quarterly revenue declining by 6% year-over-year (YoY) to $1 million.  

Truth Social, although backed by Trump’s brand, remains a niche player in the competitive social media landscape, which is dominated by platforms like Meta’s ($META) Facebook and Threads, Elon Musk’s X, and the new entrant Bluesky.

DJT’s shares were down over 6% before markets opened on Tuesday. However, the stock is in the green with gains of 76% since March when it first got listed.

Meanwhile, Bakkt’s stock has lost 35% of its value so far in 2024.