Bakkt Holdings, the digital asset marketplace backed by the parent company of the New York Stock Exchange (NYSE), is reportedly exploring the possibility of a sale in response to the changing landscape of the cryptocurrency industry.
According to sources familiar with the matter, the company has enlisted the help of a financial advisor to evaluate different strategic options, including the potential for a breakup, as reported by BNN Bloomberg.
Despite these considerations, Bakkt has not yet made a final decision and may opt to remain an independent entity.
Established with much excitement in 2018 by Intercontinental Exchange, the owner of the NYSE, Bakkt initially made headlines with partnerships with Starbucks Corp. and Microsoft Corp., under the leadership of founding CEO Kelly Loeffler, who later became a US Senator from Georgia.
Earlier this year, Bakkt faced the possibility of being delisted from the NYSE due to concerns about its financial viability. The company offers a wide range of services, including trading and custody, in a market experiencing consolidation and a resurgence in cryptocurrency prices.
Recent industry news includes Robinhood Markets Inc.’s acquisition of Bitstamp, a European crypto exchange, and Riot Platforms Inc.’s proposed takeover of Bitfarms, a competing Bitcoin miner.
Bakkt, which went public through a merger in 2021, reported a first-quarter loss of $21 million on revenue of $855 million. The company recently announced a partnership with Crossover Markets to develop a crypto electronic communication network (ECN) to expand its offerings.
Possessing the BitLicense from the New York State Department of Financial Services, Bakkt is well-positioned in the digital asset platform landscape, alongside other major players like Coinbase Global Inc., Circle, and Square.
Following the news of Bakkt’s partnership with Crossover Markets, the company’s shares saw a 15% increase, reaching $22.33. This surge contributed to a 27% increase in the stock price over the week, with a current market valuation of approximately $300 million, despite a 30% decline over the past year.
In November 2023, Bakkt Holdings announced its expansion into international and domestic markets, with plans to extend cryptocurrency capabilities to global markets and new clients.
As trading volume on major cryptocurrency exchanges experienced a decline in April, including a decrease in derivatives trading volume, Bakkt continues to navigate the evolving landscape of the digital asset industry.
