Shares of a publicly traded Cryptocurrency company have risen nearly threefold in a month after reports of a possible acquisition by Trump Media & Technology Group (NASDAQ:DJT), the media and technology conglomerate founded by the president-elect of the United States donald trump.
What happened
Bakkt Holdings (NYSE:BKKT) closed at an 11-month high of $32.44 earlier this Monday, marking a staggering 186% gain in one month between Nov. 15 and Nov. 16. of December. The news of the possible acquisition by Trump Media & Technology Group caused an increase in the company’s valuation, which is now $443 million, which means an addition of $288 million.
The news of the possible acquisition by Trump Media & Technology Group provided positive momentum, as the company is in the advanced negotiation phase. No official confirmation has yet been issued at the time of writing.
Bakkt, based in Alpharetta, Georgia, offers cryptocurrency trading, storage, and loyalty point redemption services.
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Bakkt was founded and is 55% owned by Intercontinental Exchange, which also owns the New York Stock Exchange.
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Why is it important
The market has reacted positively to Trump’s victory, with the price of the leading cryptocurrency, Bitcoin (CRYPTO: BTC), exceeding $100,000, and other cryptocurrency-based values, such as MicroStrategy (NASDAQ:MSTR) and MARA Holdings (NASDAQ:MARA), making big profits.
The optimism comes from President Trump’s aggressive campaign for cryptocurrencies, which includes bold promises such as creating a national reserve of Bitcoin.
Interestingly, Bakkt shares have outperformed Bitcoin and its de facto proxy, MicroStrategy, which grew just 16% and 24%, respectively, in that period.
However, one could argue that low-priced stocks have greater potential for large percentage moves.
Bakkt Price Movement
Meanwhile, Bakkt shares have given back gains from earlier in the week and plunged 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, based on ratings from four analysts. The highest price, $7, was issued by Jefferies in January, while the lowest, of $0.3, was issued by Citigroup in March.
The value of DJT shares has also decreased by 7%, to $35.32. The fall is more related to the ‘hawk’ perspective of the Federal Reservewhich has harmed the market in general.
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