Bakkt, the digital asset marketplace launched by Intercontinental Exchange (ICE) in 2018, is exploring strategic options including a potential sale or breakup, according to a Bloomberg report. This news comes amidst a flurry of mergers and acquisitions within the cryptocurrency sector, as the industry navigates a period of consolidation.
Sources familiar with the matter revealed that Bakkt, which went public through a SPAC merger in 2021, has enlisted a financial advisor to assess its future direction. The company, which offers institutional-grade cryptocurrency custody and trading services, is yet to make a final decision and could choose to remain independent.
Bakkt’s consideration of a sale or breakup coincides with a surge in takeover activity within the crypto space. This consolidation trend is particularly evident as crypto prices approach record highs. While some companies are in expansion mode, others are still recovering from the industry-wide downturn witnessed two years ago. Recent examples include Robinhood’s acquisition of European crypto exchange Bitstamp and Riot Platforms’ proposed takeover of rival Bitfarms.
Despite reporting a first-quarter loss of $21 million on $855 million in revenue, Bakkt boasts a valuable asset: a BitLicense from the New York State Department of Financial Services. This license, which allows operation within the state, is shared by major industry players like Coinbase, Circle, and Square. Following the sale news, Bakkt’s share price jumped 15% to $22.33 on Friday, pushing the company’s market valuation close to $300 million. However, the stock price remains down roughly 30% compared to last year.
As Bakkt weighs its options, industry observers remain curious about the company’s future trajectory. Will it be acquired by a larger player seeking to expand its crypto footprint? Or will it embark on a strategic breakup, potentially carving out its coveted BitLicense for a separate sale? Only time will tell how this chapter unfolds for Bakkt in the ever-evolving cryptocurrency landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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