Crypto buying and selling trade Bakkt, which counts NYSE-owner Intercontinental Trade, Inc. (ICE) amongst its traders, goes public on the New York Stock Exchange (NYSE) by way of a merger with VPC Influence Acquisition Holdings Inc., a special purpose acquisition company (SPAC). SPAC corporations increase cash from public markets specifically for the aim of merging with startups in a specific sector and to take them public. The corporate might be renamed Bakkt Holdings, Inc.
From Futures Platforms to Digital Wallets
Began in 2019, Bakkt was initially a buying and selling venue for buying and selling Bitcoin futures and choices. The corporate’s founding group consisted of ICE CEO Jeffrey Sprecher and his spouse, former senator Kelly Loeffler, who additionally served as the corporate’s first CEO.
Whereas it’s an end-to-end regulated buying and selling platform, the corporate has didn’t rack up substantial buying and selling volumes for its contracts in an trade the place the Chicago Mercantile Exchange (CME), which launched its futures contracts in 2019, leads the pack. Bakkt has since pivoted from its preliminary imaginative and prescient of offering “belief and transparency” to the digital property ecosystem to growing shopper purposes for digital property. It launched a digital pockets final 12 months and examined integration of “Bakkt money” with Starbucks. The pockets’s scope was later expanded to every kind of digital property, together with rewards miles and loyalty factors. In Could 2020, Bakkt acquired Bridge2 Options, a loyalty rewards firm, for $300 million.
In keeping with Crunchbase, Bakkt has raised $482.5 million. Other than ICE, the New York-based firm’s traders embrace Microsoft Company’s (MSFT) enterprise capital subsidiary M12, Boston Consulting Group, and Goldfinch Companions. Bakkt is valued at $2.1 billion within the public markets. When it raised $300 million from traders final Could for the Bridge2 Resolution acquisition, Bakkt was reported to have a valuation of greater than $1 billion.
Bakkt’s announcement comes on the heels of San Francisco-based crypto trade Coinbase’s submitting of a draft registration statement with the Securities and Exchange Commission (SEC) for an initial public offering (IPO).