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NYSE Parent’s Crypto Platform Bakkt Considers Potential Sale: Report

Finance Magnates

Cryptocoins News / Finance Magnates 39 Views

Bakkt, a cryptocurrency platform backed by the New York Stock Exchange (NYSE) owner, is exploring a potential sale or even a breakup, Bloomberg reported, citing “people familiar with the matter.” However, Bakkt did not confirm or deny anything officially.

A Major Decision Incoming?

The report outlined that the Georgia-based company has been working with financial advisors and is considering a range of strategic options, which include a potential sale or a buyout. However, none of the decisions have been finalised yet, and the company could continue to operate independently.

The alleged consideration of the potential sale came after the company closed the first quarter of 2024 with a loss of $21 million on revenue of $855 million. It generated $780.1 million in revenue in 2023 when it narrowed down its net loss by a significant 89 percent to $225.8 million.

In 2024, the company is expected to generate total revenue between $3.29 billion and $5.11 billion.

A Stressed Company

Bakkt, set up by Intercontinental Exchange, was launched in 2018 with the initial goal of facilitating Starbucks customers to purchase coffee with Bitcoin. The company gradually moved to offer cryptocurrency trading, primarily with derivatives, and is now focusing on crypto custodian services. It even launched a digital wallet in 2021 but discontinued the services last year.

The company went public in November 2020 despite a slowdown after a broad audience, including the mainstream financial services sector, initially recognised cryptocurrencies. The company's share price dropped by 44 percent in the past year, while the year-to-date loss is 64 percent. Interestingly, the company's stocks gained 93.5 percent over the last month.

Earlier this year, Bakkt signalled a stressed future for the company because it had insufficient cash 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 communication network (ECN). Crossover will provide technology for Bakkt's upcoming crypto ECN, BakktX.

This article was written by Arnab Shome at www.financemagnates.com.
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