Bakkt Holdings, a digital asset marketplace backed by the parent company of the New York Stock Exchange (NYSE), is reportedly exploring the possibility of a sale amidst a changing landscape in the crypto industry. The company has enlisted the help of a financial advisor to evaluate different strategic options, including the potential for a breakup, according to sources familiar with the situation as reported by BNN Bloomberg.
Despite these considerations, no final decision has been made, and Bakkt may opt to remain an independent entity. Initially launched to great excitement in 2018 by Intercontinental Exchange, the owner of the NYSE, Bakkt made headlines with partnerships with Starbucks Corp. and Microsoft Corp. The company’s founding CEO, Kelly Loeffler, later went on to become a US Senator from Georgia.
Earlier this year, Bakkt faced the possibility of being delisted from the NYSE due to concerns about its ongoing operations. Offering a wide range of services such as trading and custody, Bakkt enters the market during a time of consolidation in the digital asset sector, alongside a resurgence in crypto prices nearing all-time highs.
Recent developments in the industry include Robinhood Markets Inc.’s acquisition of European crypto exchange Bitstamp and Riot Platforms Inc.’s proposed takeover of Bitfarms, one of the largest Bitcoin miners. Bakkt itself went public through a merger with a blank-check vehicle in 2021.
In the first quarter of this year, Bakkt reported a loss of $21 million on revenue of $855 million. The company recently announced a partnership with Crossover Markets to establish a crypto electronic communication network (ECN), expanding its offerings. Bakkt’s possession of the BitLicense from the New York State Department of Financial Services strengthens its position in the digital asset platform market.
Following these developments, Bakkt’s shares surged by 15% to reach $22.33 on Friday, resulting in a current market valuation of around $300 million. However, it should be noted that the stock has experienced a decline of approximately 30% over the past year.
In November 2023, Bakkt Holdings revealed its plans for international and domestic expansion. The company aims to extend cryptocurrency capabilities to various global markets, serving both existing partnerships and new clients. Market trends show a significant decline in trading volume on major cryptocurrency exchanges in April, coinciding with Bitcoin’s decrease from its all-time high. Additionally, derivatives trading volume saw its first decline in seven months, dropping by 26.1% to $4.57 trillion.
As the industry continues to evolve, Bakkt remains a key player in the digital asset marketplace, navigating the challenges and opportunities presented by the ever-changing crypto landscape.