Share this article
Bakkt is considering strategic options, including a potential sale or breakup, according to an initial report from Bloomberg citing persons familiar with the matter. The move comes amid a surge in takeover activity within the cryptocurrency sector.
The sources, who asked to remain anonymous due to the confidential nature of the matter, revealed that Bakkt has been working with a financial advisor to evaluate its options. However, no final decision has been made, and the company may choose to remain independent.
Bakkt was launched in 2018 by Intercontinental Exchange, which owns several major futures markets and the NYSE. The venture’s founding CEO, Kelly Loeffler, later served as a US Senator from Georgia for a year. Earlier this year, Bakkt faced the risk of being delisted from the NYSE after disclosing that it might not be able to continue as a going concern.
Increased crypto merger and acquisition activities
The potential sale of Bakkt comes as consolidation activity heats up in the digital-asset sector, with crypto prices nearing record highs. While some companies are considering expansion, others are still recovering from the industry-wide meltdown that occurred two years ago. Recent examples of consolidation include Robinhood’s acquisition of European crypto exchange Bitstamp and Riot Platforms Inc.’s proposed takeover of its rival Bitfarms.
Bakkt, which went public through a merger with a blank-check vehicle in 2021, reported a first-quarter loss of $21 million on $855 million in revenue. The company also recently announced a partnership with Crossover Markets to develop a crypto electronic communication network (ECN).
One of Bakkt’s valuable assets is its BitLicense from the New York State Department of Financial Services, which allows it to operate in the state. Other major industry participants with this license include crypto exchange Coinbase, stablecoin issuer Circle, and Jack Dorsey’s digital payment firm Square.
Following the news of the potential sale, Bakkt shares rose 15% to $22.33 on Friday, bringing the company’s market value to around $300 million. Despite this recent increase, the stock has fallen approximately 30% over the past year.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Be the first to comment