The subsidiary of Intercontinental Exchange, Bakkt plans to go public on the New York Stock exchange. It has decided to go public via merging it with a SPAC (Special-purpose Acquisition Company). The crypto firm will combine with an already listed SPAC named VIHAU (VPC Impact Acquisition Holdings) and rename the merged organization to Bakkt Holding Inc. The firm’s current market valuation is $2.1 billion. Bakkt will raise further $532 million from VPC’s funds for its cash balance.
Reportedly, the deal may close in the second quarter of this year. To date, the firm has raised a sum of $482.5 million, according to Crunchbase. A SPAC, also named blank-cheque companies, are utilized to raise funds for acquisitions, mergers, and public listings. They have become a fan favorite amongst Wall Street financiers recently. There was a hype in the crypto community during the launch of the digital asset trading platform in 2018 as Bakkt’s parent company was the same as the NYSE’s (New York Stock Exchange).
Intricate details about services offered by Bakkt
Significant sponsors and partners in Boston Consulting Group (BCG), Microsoft, and Starbucks supports the firm. Initially, the platform only backed Bitcoin futures, both physically settled in Bitcoin (like on Bitmex) and cash (similar to CME). Aside from Bitcoin futures, Bakkt also offers institutional custody services. Additionally, the firm intends to constitute payment facilities and other crypto-related services through a mobile application. Bakkt has also planned to constitute Bitcoin payment options and virtual asset reward points from airline companies, Starbucks, and other companies.
Further, Bakkt stated that it had hired Gavin Michael, a former Citi executive, as its new CEO. Michael succeeds former Bakkt interim CEO David Clifton, who will accompany the company’s board of directors. Bakkt further declared the targeted launch of its retail app, Bakkt Cash, in March of this year. The firm announced that above 400,000 customers have signed up for early access to the application.
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