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Crypto Marketplace Bakkt To Be Sold

Yolowire 10-Jun-2024 10:15 AM

%BakktHoldings (NYSE:BKKT), the %Cryptocurrency marketplace started by the parent company of the New York Stock Exchange (NYSE), is exploring a potential sale.

Multiple media reports say that Bakkt has been working with a financial advisor to weigh several options, including a sale.

Based in Georgia, Bakkt is owned by Intercontinental Exchange (ICE), which also owns the NYSE and several smaller stock exchanges.

Intercontinental Exchange launched Bakkt in 2018 and the company went public in 2021 via a special purpose acquisition company (SPAC).

However, Bakkt’s stock has plunged 92% since its market debut and it has raised going concern risks in recent months, saying it might be unable to continue operations.

A potential sale of Bakkt, which offers crypto trading and custody services, comes amid a wave of consolidation in the sector.

In recent weeks, %RobinhoodMarkets (NASDAQ:HOOD) announced that it is acquiring crypto exchange Bitstamp. Crypto miner %RiotPlatforms (NASDAQ:RIOT) has proposed taking over rival %Bitfarms (NASDAQ:BITF).

Bakkt most recently reported a first-quarter loss of $21 million U.S. on $855 million U.S. in revenue. Management has raised the possibility of bankruptcy filing in recent months.

Bakkt stock has declined 45% over the past 12 months and currently trades at $18.70 U.S. per share.