Bakkt Holdings Inc. Reportedly Considering Sale Amid Crypto Market Consolidation

As a researcher with experience in the digital asset marketplace and cryptocurrency industry, I find the potential sale of Bakkt Holdings Inc. intriguing, given its significant backstory and recent financial performance.

As a crypto investor, I’ve been keeping an eye on Bakkt Holdings Inc., the digital asset marketplace operated by Intercontinental Exchange Inc. (ICE), based in Alpharetta, Georgia. Recently, there have been numerous mergers and acquisitions in the crypto space, and according to a Bloomberg report by Matthew Monks, David Pan, and Gillian Tan, Bakkt is reportedly considering a potential sale. The company has supposedly brought on a financial advisor to explore strategic options, including a possible breakup. However, it’s important to note that no definitive decision has been made yet. Bakkt could still choose to continue operating independently. I reached out to Bakkt for comment, but they declined to provide any information on the matter.

Introduced in 2018 with high anticipation, Bakkt emerged as a new venture by Intercontinental Exchange (ICE), the proprietor of the New York Stock Exchange. In partnership with Starbucks Corporation and Microsoft Corporation, as mentioned in Bloomberg, this trio launched Bakkt. Former CEO, Kelly Loeffler, subsequently represented Georgia as a U.S. Senator. Recently, Bakkt grappled with the possibility of being removed from the NYSE due to reported difficulties in maintaining financial solvency, according to Bloomberg.

According to a Bloomberg report, Bakkt provides multiple offerings such as trading and safekeeping services, and is pondering potential strategies in response to the ongoing consolidation trend within the digital asset marketplace. The value of cryptocurrencies is approaching all-time highs, prompting some businesses to expand while others are still reeling from the industry’s slump that occurred two years ago. For example, Robinhood Markets Inc. recently disclosed its acquisition of European crypto exchange Bitstamp, and Riot Platforms Inc., a major Bitcoin miner, expressed plans to merge with rival Bitfarms.

In their Q1 report for 2021, Bakkt disclosed a loss of $21 million on revenues amounting to $855 million. This financial setback came after the company went public through a merger with a Special Purpose Acquisition Company (SPAC). Despite these losses, Bakkt remains committed to innovation and has recently teamed up with Crossover Markets to create a crypto electronic communication network (ECN).

New York State Department of Financial Services has granted BitLicense to Bakkt, enabling the company to lawfully carry out its operations within New York.

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2024-06-10 01:22