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NYSE Parent Crypto Platform Bakkt Considers a Potential Sale: Report
Bakkt, a cryptocurrency platform backed by the owner of the New York Stock Exchange (NYSE), is exploring a potential sale or even breakup, Bloomberg reported, citing “people familiar with the matter.” However, Bakkt has neither confirmed nor denied anything officially.
An important decision coming up?
The report highlights that the Georgia-based company has been working with financial advisors and is considering a number of strategic options, which include a potential sale or buyout. However, none of the decisions have been finalized yet and the company may continue to operate independently.
The rumored consideration of the potential sale came after the company ended the first quarter of 2024 with a loss of $21 million on revenue of $855 million. He generated $780.1 million in revenue in 2023 when it reduced its net loss by a significant 89% to $225.8 million.
In 2024, the company is expected to generate total revenues of between $3.29 billion and $5.11 billion.
A stressed company
Bakkt, created by Intercontinental Exchange, was launched in 2018 with the initial goal of making it easier for Starbucks customers to purchase coffee with Bitcoin. The company gradually transitioned to offering cryptocurrency trading, primarily with derivatives, and is now focusing on cryptocurrency custody services. It also launched a digital wallet in 2021, but discontinued services last year.
The company went public in November 2020, despite a slowdown after a broad audience, including the traditional financial services sector, initially recognized cryptocurrencies. Over the past year, the company’s share price has fallen by 44%, while the loss since the beginning of the year is 64%. Interestingly, the company’s shares have gained 93.5% over the past month.
Earlier this year, Bakkt flagged a stressful future for the company because it did not have sufficient liquidity for its operations. However, the situation was mitigated as the company eventually strengthened its cash reserve.
Recently, Bakkt partnered with Crossover Markets to develop a cryptocurrency electronic communications network (ECN). Crossover will provide the technology for Bakkt’s upcoming ECN cryptocurrency, BakktX.
Bakkt, a cryptocurrency platform backed by the owner of the New York Stock Exchange (NYSE), is exploring a potential sale or even breakup, Bloomberg reported, citing “people familiar with the matter.” However, Bakkt has neither confirmed nor denied anything officially.
An important decision coming up?
The report highlights that the Georgia-based company has been working with financial advisors and is considering a number of strategic options, which include a potential sale or buyout. However, none of the decisions have been finalized yet and the company may continue to operate independently.
The rumored consideration of the potential sale came after the company ended the first quarter of 2024 with a loss of $21 million on revenue of $855 million. He generated $780.1 million in revenue in 2023 when it reduced its net loss by a significant 89% to $225.8 million.
In 2024, the company is expected to generate total revenues of between $3.29 billion and $5.11 billion.
A stressed company
Bakkt, created by Intercontinental Exchange, was launched in 2018 with the initial goal of making it easier for Starbucks customers to purchase coffee with Bitcoin. The company gradually transitioned to offering cryptocurrency trading, primarily with derivatives, and is now focusing on cryptocurrency custody services. It also launched a digital wallet in 2021, but discontinued services last year.
The company went public in November 2020, despite a slowdown after a broad audience, including the traditional financial services sector, initially recognized cryptocurrencies. Over the past year, the company’s share price has fallen by 44%, while the loss since the beginning of the year is 64%. Interestingly, the company’s shares have gained 93.5% over the past month.
Earlier this year, Bakkt flagged a stressful future for the company because it did not have sufficient liquidity for its operations. However, the situation was mitigated as the company eventually strengthened its cash reserve.
Recently, Bakkt partnered with Crossover Markets to develop a cryptocurrency electronic communications network (ECN). Crossover will provide the technology for Bakkt’s upcoming ECN cryptocurrency, BakktX.