Bakkt’s Bold Move
In a thrilling twist to the digital currency saga, Bakkt has officially completed its acquisition of Apex Crypto LLC, announced on April 3rd. The deal, agreed upon in November, is valued at a striking $200 million, comprising $55 million in cash and about $145 million in stock. Not bad for a technology platform that’s not even been around for five years!
Apex Crypto: The Unsung Hero
Founded in 2019, Apex Crypto isn’t just any tech platform; it’s a powerhouse that manages everything from trade execution to tax services for a substantial client base. Over the years, it has facilitated a jaw-dropping $12.5 billion in trades of digital assets. If trades were calories, Apex would be a heavyweight champion in the ring, folks!
What This Means for Bakkt
The CEO of Bakkt, Gavin Michael, has stated that this acquisition signals an exciting new chapter. He hints that Bakkt will tap into an impressive network of 5.8 million crypto-enabled accounts. Oh, the places they’ll go! Michael envisions this as a way to bolster their reputation as a leading B2B2C provider in the crypto realm.
Profitability on the Horizon
Bakkt expects the acquisition to ease its journey back to profitability—an exhilarating prospect for both the company and its stakeholders. By diversifying revenue streams and achieving cost synergies, the company is looking to unlock new markets and enhance consumer appeal. Think crypto rewards and potential international expansion—you know, the good stuff!
A Brief History of Bakkt
Born from the brainpower of the Intercontinental Exchange in 2018, Bakkt initially gained attention by allowing accredited investors to trade Bitcoin futures contracts. Since then, the firm has taken a leap into the world of crypto payment solutions and APIs, making it a noteworthy player in the digital finance arena. Who says you can’t teach an old dog new tricks?
A Bumpy Ride on Wall Street
After going public at $10 per share through a SPAC deal in October 2021—valuing the firm at $2.1 billion—Bakkt’s path has seen dramatic rises and falls. Following the announcement of its partnership with Mastercard, shares soared over 100%. Unfortunately, they’ve since taken a nosedive by over 83%, leading to a current market cap of $451 million. Talk about a roller coaster ride!
