Bakkt reports $348 million in sales for the second quarter as it thinks about reorganizing its business.
One source told Bloomberg that Bakkt is talking to people about their options, which might include selling or breaking apart. The move is in response to the recent uptick in mergers and acquisitions in the crypto industry.
Bakkt has been collaborating with a financial adviser to assess its alternatives, according to the sources who want to remain anonymous owing to the sensitive nature of the subject. But nothing is official just yet, and the business can decide to keep operating on its own.
Intercontinental Exchange, proprietor of the New York Stock Exchange (NYSE) and several other prominent futures markets, introduced Bakkt in 2018. A year after starting the company, Kelly Loeffler was a senator representing Georgia in the United States Senate. Bakkt disclosed earlier this year that it may not be able to continue as a going concern, putting the company in danger of delisting from the NYSE.
As crypto prices approach record highs and consolidation activity intensifies in the digital asset market, Bakkt’s possible sale might occur at any moment. Many businesses are still bouncing back from the industry-wide crash that happened two years ago, even though some are thinking about expanding. Two recent instances of consolidation include the planned purchase of Bitfarms by Riot Platforms Inc. and the acquisition of Bitstamp by Robinhood, a European cryptocurrency exchange.
In the first quarter of 2021, Bakkt, which became public after merging with a blank-check vehicle, lost $21 million on sales of $855 million. Additionally, the business and Crossover Markets have just declared their intention to join together to create a crypto ECN.
In order to do business in New York, Bakkt has obtained a BitLicense from the state’s Department of Financial Services. This license is considered a key asset by the company. Coinbase, Circle (which issues stablecoins), and Square (Jack Dorsey’s digital payment startup), among other prominent players in the market, also possess this license.
The possible sale prompted a 15% increase in Bakkt shares to $22.33 on Friday, valuing the business at over $300 million. In spite of this uptick, the stock has lost about 30% of its value in the last 12 months.
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