Cryptocurrency depository Bakkt is reportedly exploring the possibility of a sale amid increased cryptocurrency-related takeover activity.
Bakkt, a cryptocurrency custody and trading platform for institutional investors, appears to be evaluating a potential sale, Bloomberg reported to learn, citing sources familiar with the matter. The report comes at a time when the cryptocurrency market is seeing a significant rise in takeover activity.
It is worth noting that the financial brokerage company Robinhood recently announced its intention to acquire the European cryptocurrency exchange Bitstamp for $200 million. Additionally, US bitcoin mining giant Riot Platforms is exploring options to acquire Canadian rival Bitfarms for $950 million, saying the company's founders may not be acting in the “best interests” of shareholders.
According to the report, the company is in talks with a financial advisor to consider various strategic options, including a possible spin-off. Sources indicate that no final decision has been made yet as Bakkt may choose to remain independent. At the time of writing, Bakkt had not made any public statements on the matter.
InterContinental Exchange Inc, which operates the New York Stock Exchange (NYSE), launched Bakkt in 2018 as a new venture to offer a range of services, including cryptocurrency trading and custody.
In its infancy, the platform partnered with several brands such as Starbucks and Microsoft. In 2021, Bakkt went public upon completion of its merger with VPC Impact Acquisition Holdings.
However, in 2024, Bakkt faced delisting from the NYSE after doubts were revealed about its ability to continue as a going concern.
As crypto.news previously reported, the uncertainty arose from Bakkt's ambitious plans to enter new markets and the admission that it could only guarantee significant revenue growth based on its historical levels. The company's management has indicated that without securing additional capital soon, it may struggle to achieve sustainable profitability and generate sufficient cash flow.