Bakkt Holdings, the digital asset marketplace established by the parent company of the New York Stock Exchange (NYSE), is reportedly considering a potential sale amidst a surge in crypto-related takeover activities. The company has engaged the services of a financial advisor to assess various strategic options, including the possibility of a breakup. Bakkt initially launched in 2018 with partnerships with Starbucks and Microsoft, but faced potential delisting earlier this year. The company offers a range of services including trading and custody and recently reported a first-quarter loss of $21 million on revenue of $855 million.
During a period of consolidation within the digital-asset sector, Bakkt enters the market as crypto prices near record highs. Other firms in the industry are also seeing increased activity, such as Robinhood Markets Inc. acquiring the European crypto exchange Bitstamp and Riot Platforms Inc. proposing a takeover of its rival, Bitfarms. Bakkt went public through a merger with a blank-check vehicle in 2021 and recently announced a partnership with Crossover Markets to develop a crypto electronic communication network (ECN), expanding its offerings. Bakkt’s possession of the coveted BitLicense from the New York State Department of Financial Services enhances its position in the digital-asset platform landscape.
Following the news of the partnership, Bakkt’s shares surged 15% to $22.33, leading to a current market valuation of approximately $300 million. However, the stock has faced a decline of around 30% over the past year. In November 2023, Bakkt Holdings announced its expansion into both international and domestic markets, detailing plans to extend cryptocurrency capabilities across global markets. Despite the recent surge in trading volume on major cryptocurrency exchanges, Bakkt’s expansion plans could position the company for further growth and market leadership.
In the midst of a surge in crypto-related takeover activities, Bakkt Holdings is reportedly considering a potential sale and has engaged the services of a financial advisor to assess strategic options. The company, established by the parent company of the NYSE, initially launched in 2018 with partnerships with Starbucks and Microsoft, but faced potential delisting earlier this year. Bakkt offers a comprehensive range of services including trading and custody, and recently reported a first-quarter loss of $21 million on revenue of $855 million.
Amidst a period of consolidation in the digital-asset sector, Bakkt enters the market as crypto prices near record highs, with other firms in the industry also experiencing increased activity. Bakkt recently announced a partnership with Crossover Markets to develop a crypto ECN and holds the coveted BitLicense from the New York State Department of Financial Services. Following the news of the partnership, Bakkt’s shares surged 15% to $22.33, leading to a current market valuation of approximately $300 million. Despite a decline of around 30% over the past year, Bakkt’s expansion plans could position the company for further growth and market leadership.
In November 2023, Bakkt Holdings announced its expansion into international and domestic markets, detailing plans to extend cryptocurrency capabilities across global markets. Despite a recent surge in trading volume on major cryptocurrency exchanges, Bakkt’s expansion could position the company for further growth. Derivatives trading volume saw its first decrease in seven months, falling by 26.1% to $4.57 trillion as major CEXs like Binance experienced a surge in trading volumes. While Bakkt faces challenges and potential sale considerations, its recent partnerships and expansion plans may pave the way for continued success in the digital-asset marketplace.
