Institutional Bitcoin exchange Bakkt goes public on the NYSE today ๐จ This article is 3 years old...
Institutional Bitcoin exchange Bakkt goes public on the NYSE today
The exchange was one of the first institutional avenues to allow the purchase of spot Bitcoin.
2 min read
Updated: Oct. 18, 2021 at 9:21 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Regulated Bitcoin futures exchange Bakkt is set to go public on the New York Stock Exchange today, just over a year after it first offered physically-settled Bitcoin futures to investors in the US.
Exposure to company exposed to Bitcoin
Bakkt announced it had completed a business combination with VPC Impact Acquisition Holdings, a special purpose acquisition company (โVIHโ).ย
The combined company now operates as Bakkt Holdings, Inc., and Bakktโs shares of Class A common stock and warrants will begin trading on the New York Stock Exchange under the ticker symbols โBKKTโ and โBKKT WSโ, respectively, starting Monday, October 18, 2021.
โToday marks a special day for Bakkt. Closing the business combination provides us with the necessary capital to continue to do what we do best, which is innovate,โ said Gavin Michael, Chief Executive Officer of Bakkt. โWe are thrilled to enter this next chapter, and we look forward to propelling our growth initiatives and advancing our mission of connecting the digital economy.โ
The business combination resulted in gross proceeds of approximately $448 million to Bakkt.ย
The transaction proceeds are expected to be used to finance investments in the companyโs platform capabilities and marketing efforts, and accelerating current and future partnerships, which the company expects will significantly accelerate the growth trajectory of the business.
Will investors pile in on Bakkt?
Meanwhile, the exchange may not be the most lucrative bet for investors seeking crypto exposure. Bakkt did less than $10 million in futures volume on Friday last week, data from skew showed. Crypto exchanges Binance and OKEx, in contrast, reported volumes of over $25 billion and $7 billion yesterday alone.
Some analysts also state the exchange has missed revenue estimates by several percentages: โIn January, Bakkt guided to $900 million FY21 sales. It’s October now, and there’s abundant evidence suggesting they miss by 90%. This becomes clear to everyone at 3Q21 earnings.โ
Bakkt ($2B mkt cap $VIH / $BKKT) goes 70-90% lower in coming months. A faceplant, a SPAC-tastrophe
In January, Bakkt guided to $900 million FY21 sales. It's October now, and there's abundant evidence suggesting they miss by 90%. This becomes clear to everyone at 3Q21 earnings. pic.twitter.com/mPuQ6JTG9h
— Fidel Cashflow (@TangoGrenada) October 13, 2021
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Bakkt
Bakkt is a new company of NYSE-operator InterContinental Exchange (ICE) designed to bring digital assets to the mainstream and help unlock the potential of this important technology.