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This is an old revision of this page, as edited by EastThermopolis (talk | contribs) at 10:49, 5 November 2022 (→Separation from ICE as a publicly listed company (2021-): Acquisition of Apex Crypto in November 2022). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Bakkt Holdings, Inc.
NYSE: BKKT
IndustryFinancial Technology
Founded2018 (as a subsidiary of Intercontinental Exchange)
2021 (spinoff)
HeadquartersAlpharetta, Georgia, U.S.
Key people
Gavin Michael (CEO)
Number of employees
~600 (February 2022)
ParentIntercontinental Exchange (68%)
Websitewww.bakkt.com Edit this on Wikidata

Bakkt Holdings, Inc. is an American corporation listed on the New York Stock Exchange under the ticker symbol BKKT.[1][2] The company operates a technology platform for the management of digital assets.[3] The platform includes an app where consumers can view and transact with assets including cryptocurrencies, loyalty and rewards points, airline miles, and gift cards.[4][5] The service also includes a cryptocurrency exchange and wallet.[6] Bakkt was founded and is majority-owned by American Fortune 500 company Intercontinental Exchange, Inc., the parent organization of the New York Stock Exchange.[7]

History under ICE ownership (2018-2020)

In August 2018, Intercontinental Exchange announced it was forming a new company Bakkt,[8] which was intended to leverage Microsoft online servers to manage digital assets. Bakkt was said to be working with Boston Consulting Group (BCG), Microsoft, Starbucks, and others to create a software platform. The Bakkt ecosystem is expected to include federally regulated markets and warehousing along with merchant and consumer applications. Its first use cases was for trading and conversion of Bitcoin (BTC) versus fiat currencies. Kelly Loeffler served as Bakkt's CEO until her appointment to the United States Senate.[9]

As an initial component of the Bakkt offering, Intercontinental Exchange's U.S.-based futures exchange and clearing house plan to launch a one-day physically delivered BTC contract along with physical warehousing in 2019, subject to CFTC review and approval, which was delayed.[10] These regulated venues will establish new protocols for managing the specific security and settlement requirements of digital currencies. In addition, the clearing house plans to create a separate guarantee fund that will be funded by Bakkt.

In January 2019, Bakkt announced that it had entered into an agreement to acquire certain assets of Rosenthal Collins Group (RCG), to close in February.[11] In April 2019, Bakkt announced that it had acquired Digital Asset Custody Company (DACC). Terms of the transaction have not been disclosed.[12] In September 2019 the exchange began trading of bitcoin futures.[13] In February 2020, ICE announced that it agreed to acquire Bridge2 Solutions, a leading provider of loyalty solutions for merchants and consumers. Following the completion of the transaction, Bakkt plans to acquire Bridge2 Solutions from ICE using proceeds from Bakkt's Series B round of funding.[14]

In September 2020, Bakkt announced a new all-time high for trade volume in physically delivered Bitcoin futures contracts. During the September 15th session, this figure amounted to 15,955 BTC (more than $200 million at the time of announcement).[15]

Separation from ICE as a publicly listed company (2021-)

In January 2021, Bakkt announced that it would become a publicly traded company via a merger with VPC Impact Acquisition Holdings, a special purpose acquisition company sponsored by Victory Park Capital (“VPC”). The newly combined company will be renamed Bakkt Holdings, Inc. and will be listed on the New York Stock Exchange, where the business combination between Bakkt and VIH values the combined company at an enterprise value of approximately $2.1 billion.[16] Intercontinental Exchange will retain a 65% economic interest.[17]

In October 2021, Bakkt announced it had completed its merger with VPC Impact Acquisition Holdings (NASDAQ: VIH), and will begin trading as a public company on the New York Stock Exchange on Monday, October 18, under the ticker “BKKT”.[18] Intercontinental Exchange (ICE) maintains an approximately 68% economic interest and a minority voting interest in the combined company. The investment will be reclassified as an equity method investment of ICE and will therefore not be consolidated within ICE’s financial statements. The earnings of equity method investments are excluded from ICE’s adjusted non-GAAP results.

In November 2022, it was announced Bakkt would be acquiring the Chicago-based integrated crypto trading platform, Apex Crypto, LLC from Apex Fintech Solutions, Inc.[19]

Strategic partnerships

The company plans to grow its user base through partnerships with other businesses.[20][21] Examples include Starbucks, whose customers can monetize digital assets such as bitcoin using the Bakkt app and load the value onto their Starbucks Cards.[22] Members of Choice Hotels and Wyndham Hotels' rewards programs can convert unused hotel points to cash, bitcoin, and other digital assets with the Bakkt app.[23][24] Through the Bakkt platform, Mastercard will enable banks and merchants to issue cards that let people pay with bitcoin and earn cryptocurrency rewards.[25]

References

  1. ^ "NYSE". www.nyse.com. Retrieved 2021-12-12.
  2. ^ "Bakkt Gets Listed on New York Stock Exchange: All You Need to Know". NDTV Gadgets 360. Retrieved 2021-12-25.
  3. ^ "Unlocking The Value Of Digital Assets". Bakkt. 2020-04-06. Retrieved 2021-12-12.
  4. ^ "Bakkt: Bitcoin, Rewards & More - Apps on Google Play". play.google.com. Retrieved 2021-12-12.
  5. ^ "Bakkt Expands Reach Of The Digital Wallet Experience To Send Digital Assets To Anyone". AiThority. 2021-06-16. Retrieved 2022-01-01.
  6. ^ "Flooded with rewards points you're not using? Bakkt's got a digital wallet for them". Fortune. Retrieved 2022-01-01.
  7. ^ "Bakkt Gets Listed on New York Stock Exchange: All You Need to Know". NDTV Gadgets 360. Retrieved 2021-12-25.
  8. ^ Tully, Shawn (August 3, 2018). "The NYSE's Owner Wants to Bring Bitcoin to Your 401(k). Are Crypto Credit Cards Next?: sources". Fortune. Retrieved August 3, 2018.
  9. ^ "The NYSE's Owner Wants to Bring Bitcoin to Your 401(k). Are Crypto Credit Cards Next?". Fortune.
  10. ^ Osipovich, Alexander; Rubin, Gabriel T. (March 21, 2019). "Bitcoin Futures Launch Hits Regulatory Snag". Wall Street Journal. Retrieved April 2, 2019.
  11. ^ "Bakkt Buys Certain Assets of Rosenthal Collins Group | Finance Magnates". Finance Magnates | Financial and business news. January 14, 2019.
  12. ^ "Bakkt acquires Digital Asset Custody Company, applies for NY trust company status". Finextra Research. April 30, 2019.
  13. ^ Osipovich, Alexander (22 September 2019). "NYSE Owner Launches Long-Awaited Bitcoin Futures". WSJ. Retrieved 24 September 2019.
  14. ^ "Bakkt aims to turn your rewards points into a wallet you can spend anywhere". Fortune.
  15. ^ "Bakkt Announces Record-Breaking Bitcoin Futures Trading Volume". Software Focus. 16 September 2020.
  16. ^ "Bakkt to go public via merger with SPAC VPC Impact Acquisition in deal with $2.1 billion enterprise value". MarketWatch. 11 January 2021.
  17. ^ "ICE to retain 65% interest in Bakkt - Sprecher". FOW. 4 February 2021.
  18. ^ "Bakkt Closes Business Combination with VPC Impact Acquisition Holdings and Will Begin Trading on the New York Stock Exchange on October 18, 2021". BusinessWire. 15 October 2021.
  19. ^ FinSMEs (2022-11-03). "Bakkt to Acquire Apex Crypto". FinSMEs. Retrieved 2022-11-05.
  20. ^ "Bakkt's plan to grow its digital asset network". Same Day Loans. Retrieved 2021-11-28.
  21. ^ East, Forbes Middle. "Crypto Platform Bakkt Reports First Earnings, Lays Out Bold Partnership Strategy". Forbes ME. Retrieved 2022-01-01.
  22. ^ "Consumers can now convert bitcoin or frequent flier miles to cash and reload their Starbucks cards to pay for lattes". Nation's Restaurant News. Retrieved 2022-01-09.
  23. ^ PYMNTS (2021-09-28). "Bakkt, Choice Hotels Expand Rewards Program". www.pymnts.com. Retrieved 2022-01-02.
  24. ^ PYMNTS (2021-12-14). "Wyndham Members Can Cash in Points With Bakkt". www.pymnts.com. Retrieved 2022-01-02.
  25. ^ Andriotis, AnnaMaria (2021-10-25). "Mastercard Partners With Bakkt to Bring Cryptocurrency Payments to the Masses". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-05-02.
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