Crypto marketplace Bakkt is reportedly exploring different corporate strategy options. The firm has been weighing all possibilities on the table - including a takeover and a breakup - with the assistance of a financial advisor.
According to unnamed sources with knowledge of the matter, no final decision has been made. Bakkt could also choose to remain independent.
Bakkt was founded in 2018 by Intercontinental Exchange - the parent of the New York Stock Exchange. Earlier this year, the crypto trading and custody platform risked being delisted on the back of not adhering to listing requirements.
The firm subsequently went through a leadership change and entered into a $40 million registered direct offering with institutional investors and a $10 million concurrent registered direct offering. In effect, that ended up easing conditions that had raised doubts about the firm as a ‘going concern.’
On the back of the latest development, Bakkt shares dropped in value. From an intraday high of $23.94, it was trading at $20.35 at press time. Nevertheless, this was ~4% higher than the level where it closed a day back.
Bakkt was in the news earlier this week after it unveiled its tie-up with Crossover Markets to provide it with technology to help power ‘BakktX.’ Its upcoming crypto Electronic Communication Network [ECN] has been designed to specifically cater to institutional needs. Before the aforementioned development, the firm laid off 13% of its workforce in May.
Bakkt entered into the crypto arena as a futures exchange. It soon launched a digital asset rewards app. Subsequently, it secured more funding and went on to acquire Apex Crypto and Bridge 2 Solutions. It went on to, however, shut down its consumer app last year.
Bakkt is not the only firm that is weighing potential sale options at the moment. Just a day back, Bitstamp announced that it was going to be acquired by Robinhood. As far as ambitions are concerned, Rohibhood will put to sea new product offerings, targeting new institutional clients. However, this will all take time to materialize. The $200 million all-cash deal is expected to wind up in the first half of 2025. According to Bernstein, this strategic move will well-position Robinhood against competitors like Coinbase and Kraken.
