Markets
Bakkt Reportedly Considering Sale of Crypto Platform
Digital asset market Bakkt is considering putting itself up for sale.
This is in line with a Friday (June 7th) report from Bloomberg News, citing sources familiar with the matter. These sources said Bakkt — which has a market value of about $300 million as of Friday — was working with a financial advisor to evaluate strategic options, including a possible spinoff.
PYMNTS reached out to Bakkt for comment but has not yet heard back.
The Bloomberg report noted that some crypto companies are still feeling the effects of the industry collapse in 2022, while others are considering expansion. For example, Robinhood Markets said last week it was acquiring the cryptocurrency exchange Bit stamp on a US$200 million deal.
This has been a busy year for Bakkt, which in February said in a US Securities and Exchange Commission (SEC) filing that it might not be able to continue as a “going concern”.
“As a result of our expected operating losses and cash burn in the foreseeable future and recurring losses from operations, if we are unable to raise sufficient capital through additional debt or equity agreements, there will be uncertainty regarding our ability to maintain sufficient liquidity to operate our business effectively,” the document said.
Soon after, the company named Andy Main as its new CEO. He announced that proceeds from a capital raise and his plans to reduce cash expenditures and other related cost savings have “alleviated conditions” that raised questions about Bakkt’s future.
Last month, Bakkt said it was fire 28 workersor 13% of its staff outside the call center, while also announcing that Charles Goodroe will step down as Bakkt’s chief accounting officer.
“The force reduction is a component of a broader strategic review of the company’s operations that aims to more effectively align resources with business priorities,” the company said in a filing with the SEC.
Also last month, Bakkt noted that institutional investors were poised to play a larger role in the cryptocurrency trading market, triggered by the SEC’s approval of bitcoin exchange-traded funds (ETFs).
This came as the company released Q1 earnings showing that crypto trading volume increased 324% compared to the previous quarter, “driven by exceptionally strong customer trading activity,” the company presentation said. Bakkt profits.
“As evidenced by our trading volumes in the first quarter, we are beginning to see positive signs in the market and the overall demand environment improving, with more industry activity, higher coin prices and greater overall retail trading volume,” said Main in season. .