Bakkt to Go Public via $2.1 Billion SPAC Merger

Bakkt to Enter Public Markets via SPAC Merger

Bakkt, a subsidiary of Intercontinental Exchange (ICE), is set to go public on the New York Stock Exchange (NYSE). The company plans to merge with VPC Impact Acquisition Holdings (VIHAU), a Special-Purpose Acquisition Company (SPAC), in a deal valuing the merged entity at $2.1 billion.

This merger will see Bakkt renamed Bakkt Holding Inc., with the deal expected to close in Q2 2021. Alongside this, Bakkt will raise $532 million in additional funds to bolster its cash balance.

What is a SPAC?

SPACs, also referred to as blank-check companies, are entities formed to raise funds for acquisitions, mergers, or public listings. They have gained immense popularity among Wall Street investors due to their streamlined process for taking companies public. Bakkt’s decision to merge with a SPAC reflects the growing interest in cryptocurrency ventures among traditional financial players.

Services Offered by Bakkt

Bakkt initially launched in 2018 with significant backing from prominent partners such as Microsoft, Starbucks, and Boston Consulting Group (BCG). Over the years, it has expanded its offerings to include:

1. Bitcoin Futures:

   • Physically settled contracts (similar to Bitmex).
   • Cash-settled contracts (like those offered by CME).

2. Institutional Custody Services:

   • Secure storage solutions for large-scale investors.

3. Bakkt Cash Mobile App:

   • Enables Bitcoin payments and virtual asset management.
   • Partners with companies like Starbucks and airlines to offer rewards and payment options.

4. Digital Asset Integration:

   • Payment facilities using cryptocurrencies.
   • Loyalty programs converted into spendable assets.

New Leadership and Future Plans

To strengthen its position in the crypto ecosystem, Bakkt has brought on Gavin Michael, a former Citi executive, as its new CEO. He replaces interim CEO David Clifton, who will join Bakkt’s board of directors.

Bakkt Cash App:

• Set for a targeted March 2021 launch.
• Already, 400,000 users have signed up for early access, showcasing strong interest in retail crypto solutions.

Why Bakkt’s Move is Significant

Bakkt’s entry into the public market via a SPAC merger highlights the growing mainstream adoption of cryptocurrencies. Its association with Intercontinental Exchange (ICE), the parent company of the NYSE, adds credibility to its ambitions.

The platform has positioned itself as a bridge between traditional finance and the digital economy. With a focus on institutional services and retail engagement, Bakkt is poised to play a pivotal role in integrating cryptocurrencies into everyday transactions.

Conclusion

Bakkt’s SPAC merger and subsequent public listing represent a milestone for the cryptocurrency industry, reflecting increased confidence in blockchain-based solutions. With its retail app, Bakkt Cash, and a diversified service portfolio, the company is set to redefine how businesses and consumers engage with digital assets.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.