A publicly traded cryptocurrency company’s shares have nearly tripled in a month following reports of a potential acquisition by President-elect Donald Trump’s Trump Media & Technology Group DJT.
What happened: Bakkt Holdings BKKT closed at an 11-month high of $32.44 earlier on Monday, marking a staggering 186% jump in a month, between Nov. 15 to Dec. 16. The rally pushed the company's valuation to $443 million, representing an addition of $288 million.
The positive momentum was imparted by reports that Trump Media & Technology Group was in advanced talks to acquire the company. The official confirmation has yet to be made as of this writing.
See Also: MicroStrategy’s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community
Bakkt, based in Alpharetta, Georgia, provides services for cryptocurrency trading, storage, and loyalty point redemption.
Bakkt was founded and is 55% owned by Intercontinental Exchange, which also owns the New York Stock Exchange.
Why It Matters: The market has reacted positively to Trump’s triumph, with the price of the top cryptocurrency Bitcoin BTC/USD surpassing $100,000 and other cryptocurrency-based equities like MicroStrategy and MARA Holdings raking in big gains.
The optimism stemmed from Trump’s vigorous pro-cryptocurrency campaign, which saw bold promises like establishing a national Bitcoin stockpile.
Interestingly, Bakkt’s stock has returned more than Bitcoin and its de facto proxy stock, MicroStrategy, which grew by only 16% and 24%, respectively, in the said time.
However, one could argue that low-priced stocks have a higher potential for large percentage moves.
Price Action: Meanwhile Bakkt shares have given up early week's gains, crashing 13.2% to $26.55 during Wednesday's regular session, according to data from Benzinga Pro.
Bakkt has a consensus price target of $2.51, according to four analyst ratings. The high of $7 was issued by Jefferies in Jan. 2022 while the low of $0.3 was issued by Citigroup in March.
The DJT stock likewise tanked 7% to $35.32. The decline had more to do with the Federal Reserve's hawkish outlook which roiled the broader market.
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