Bitcoin custodian Bakkt prepares for IPO

The institutional cryptocurrency company can go public with a value of USD 2 billion.

Go public after merger
Bloomberg wrote this week that Bakkt is working on a merger with VPC Impact Acquisition Holdings (VPC). If this merger has been carried out successfully, Bakkt wants to publicly offer shares.

The company Bakkt is owned by the Intercontinental Exchange (ICE) and will as a result refrain from the traditional Initial Public Offering (IPO) route and instead trade directly on a public exchange.

VPC is a special-purpose acquisition company (SPAC), which means Bitcoin Profit that they specialise in making other companies available to the public. SPACs allow retail investors to invest in private equity, and a merger would mean that they could trade Bakkt’s shares on the open market.

Value USD 2 billion
Sources suggested to Bloomberg that the deal Bakkt (combined with VPC) should be worth just over $2 billion. That is very good news, and a nice exit for existing shareholders who so far have invested a little less than 300 million dollars in Bakkt.

In the meantime, Bakkt has remained a modest player in the broader crypto market, despite its gigantic valuation. It started last year, after several delays, with its innovative physically delivered daily and monthly Bitcoin futures. As you can see below, Bakkt is one of the smallest players in this market. It ‚only‘ traded for USD 160 million.

Small Player
The amount, although considerable, is small compared to more well-known players such as Binance or Huobi, who traded more than 35 billion and 27 billion on Friday respectively. Even the Chicago Mercantile Exchange (CME), an old stock exchange, traded much more: $3.6 billion according to data from analysis company Skew.

Another IPO that the crypto world is looking forward to is that of Coinbase. The American cryptocurrency exchange has applied to the Securities and Exchange Commission (SEC) to go public. Some analysts are of the opinion that Coinbase could be worth as much as USD 28 billion.

10. Januar 2021