Bakkt Holdings, the digital asset marketplace launched by the parent company of the New York Stock Exchange (NYSE), is reportedly considering a potential sale in light of increased buyout activity within the market. crypto industry.
Bakkt evaluates strategic alternatives
According to According to Bloomberg, sources familiar with the matter revealed that Bakkt had hired a financial advisor to explore various strategic options, including a possible breakup. However, no final decision has been made.
Intercontinental Exchange (ICE), owner of the major futures exchanges and the NYSE, launched Bakkt amid significant anticipation. The company was announced in collaboration with Starbucks and Microsoftattracting considerable attention.
Kelly Loeffler, founding CEO of Bakkt, later served as a U.S. senator from Georgia for a year. Earlier this year, Bakkt faced the risk of radiation of the NYSE after revealing potential going concern challenges.
Bakkt, which provides several services including trading and custody, is entering the market during a period of consolidation within the digital assets industry.
However, cryptocurrency prices have reached a near-record high. topsprompting some companies to consider expansion while others continue to recover from the industry-wide downturn two years ago.
Potential breakup considered
Bakkt went public in 2021 through a merger with a blank check vehicle. In the first quarter of this year, the company reported a loss of $21 million on revenue of $855 million. On Friday, Bakkt unveiled a partnership with Crossover Markets to develop a crypto electronic communication network (ECN), further expanding its offering.
Bakkt holds a coveted BitLicense from the New York State Department of Financial Services, a regulatory license required to operate in the state.
Following the news, the company’s shares jumped 15% to $22.33 on Friday, up 27% for the week. The company’s market value is approximately $300 million. However, Bakkt shares declined about 30% over the past year.
Overall, as the digital asset marketplace company explores potential strategic options, including a potential sale, in response to increased activity in the crypto sector, it finds itself at a crucial crossroads.
Bakkt’s suite of services, BitLicense approval, and recent partnership announcements make it a significant player in the market. Nonetheless, industry players will closely monitor the company’s future trajectory and its determination to remain independent or seek a buyer.
Since the last update, the total market capitalization of the cryptocurrency market has fallen below the $2.5 trillion mark. This drop is mainly due to the drop in the price of Bitcoin (BTC), the largest cryptocurrency in terms of market capitalization. Bitcoin saw a drop from $71,000 and is currently valued at around $69,000.
Featured image from Shutterstock, chart from TradingView.com
