Bakkt, a crypto custody and trading platform for institutional investors, is reportedly exploring a potential sale amid a surge in crypto-related takeover activity.
Sources familiar with the matter told Bloomberg that Bakkt, which operates as a crypto warehouse, is evaluating strategic options, including a possible sale, with the assistance of a financial advisor. Despite these discussions, no final decision has been made, and Bakkt may still opt to remain independent. As of now, Bakkt has not publicly commented on these speculations.
This development comes during a period of increased acquisition activity in the crypto market. Recently, fintech brokerage firm Robinhood announced plans to acquire European crypto exchange Bitstamp for $200 million. Similarly, American Bitcoin mining giant Riot Platforms is considering a $950 million acquisition of its Canadian rival Bitfarms, amid concerns that Bitfarms’ founders may not be acting in the best interests of shareholders.
Bakkt was launched in 2018 by Intercontinental Exchange Inc. (ICE), the operator of the New York Stock Exchange (NYSE), with the aim of offering a comprehensive suite of services, including crypto trading and custody. The platform initially partnered with prominent brands such as Starbucks and Microsoft, and went public in 2021 following a merger with VPC Impact Acquisition Holdings.
However, Bakkt has recently faced challenges. In 2024, the company risked delisting from the NYSE after expressing doubts about its ability to continue as a going concern. This uncertainty stemmed from Bakkt’s ambitious expansion plans and its reliance on historical revenue levels to project significant future growth. The management acknowledged that without securing additional capital soon, the company might struggle to achieve sustainable profitability and generate sufficient cash flow.
As Bakkt navigates these financial uncertainties and explores potential strategic moves, the outcome remains to be seen whether it will pursue a sale or find another path to ensure its long-term viability in the competitive crypto market.
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