Bitcoin Marketplace Bakkt to Go Public, Valued at $2.1 Billion
Key Takeaways
- Bakkt, a regulated digital asset marketplace in the U.S., has prepared to issue its public shares at a total valuation of $2.1 billion.
- Bakkt has merged with a blank-cheque company to go public.
- More than 400,000 people have pre-registered for Bakkt’s trading app, which includes Bitcoin payment capabilities in the pipeline.
Bakkt, the subsidiary of Intercontinental Exchange, has decided to go public by merging it with a special-purpose acquisition company (SPAC).
Bakkt to Roll Out App and Airline Rewards
The crypto firm will merge with an already listed SPAC called VPC Impact Acquisition Holdings (VIHAU) and rename the merged entity to Bakkt Holding Inc. The total valuation of the firm was kept at $2.1 billion.
Bakkt will raise an additional $532 million from VPC’s funds for its cash balance. Reportedly, the deal is expected to close in the second quarter of this year.
A SPAC, also called blank-cheque companies, are used to raise funds for mergers, acquisitions, and public listings. They have become a fan favorite among Wall Street financiers as of late.
The launch of the digital asset trading platform was hyped in 2018 due to Bakkt’s parent company being the same as the New York Stock Exchange’s (NYSE).
The firm is also supported by prominent sponsors and partners in Boston Consulting Group (BCG), Microsoft, and Starbucks.
Initially, the platform only supported Bitcoin futures, both physically settled in Bitcoin (like on Bitmex) and in cash (similar to CME). Apart from Bitcoin futures, Bakkt also provides institutional custody services.
In the future, the firm plans to include payment abilities and other crypto-related services via a mobile application. Bakkt has also proposed to include Bitcoin payment options and virtual asset reward points from Starbucks, airline companies, and other companies.
Bakkt has targeted 30 million app users in the next five years.
Disclosure: This author held Bitcoin at the time of publication.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article
