(Bloomberg) — Bakkt Holdings Inc., the digital-asset marketplace launched by the parent of the New York Stock Exchange, is exploring a potential sale amid a spike in crypto-related takeover activity, according to people familiar with the matter.
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Bakkt has been working with a financial advisor to weigh a range of strategic options, including a breakup, said the people, who asked to not be identified because the details aren’t public. No final decision has been made and Bakkt could opt to remain independent. A representative for Alpharetta, Georgia-based Bakkt declined to comment.
Intercontinental Exchange Inc., which owns some of the biggest futures markets as well as the NYSE, launched Bakkt with much fanfare in 2018, announcing that it was teaming up at the time in the venture with Starbucks Corp. and Microsoft Corp. Kelly Loeffler, the founding CEO, later went on to serve as a US Senator from Georgia for one year. Bakkt risked being delisted from the NYSE earlier this year after revealing it may not be able to continue as a going concern.
Bakkt, which offers a suite of services including trading and custody, comes to market as consolidation heats up in the digital-asset sector with crypto prices back near record highs. While some firms are mulling expansion, others are still reeling from an industry-wide meltdown two years ago. Robinhood Markets Inc. said Thursday it will acquire the European crypto exchange Bitstamp. Riot Platforms Inc., one of the largest Bitcoin miners, proposed to take over its rival Bitfarms.
Bakkt went public through a merger with a blank-check vehicle in 2021. The company posted a first-quarter loss of $21 million on $855 million in revenue. On Friday, Bakkt announced that it has partnered with Crossover Markets to develop a crypto electronic communication network, or ECN.
The digital-asset platform does have a much sought-after BitLicense from the New York State Department of Financial Services. Other major participants in the industry who have been cleared to do business in New York include crypto exchange Coinbase Global Inc., stablecoin issuer Circle and Jack Dorsey’s digital payment firm Square.
Bakkt shares rose 15% to $22.33 on Friday and are up about 27% this week, giving the company a market value of around $300 million. The stock has fallen about 30% in the past year.
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