Markets
Bakkt reportedly considering selling crypto platform
Digital Asset Market Bakkt would consider putting itself up for sale.
This is according to a Friday (June 7) report from Bloomberg News, citing sources familiar with the matter. These sources said Bakkt – whose market value was around $300 million as of Friday – had worked with a financial advisor to evaluate strategic options, including a possible breakup.
PYMNTS has reached out to Bakkt for comment but has not yet received a response.
The Bloomberg report notes that some crypto companies are still feeling the effects of the industry collapse in 2022, while others are eyeing expansion. For example, Robinhood Markets said last week it was acquiring the crypto exchange Bit stamp in a $200 million deal.
It’s been a turbulent year for Bakkt, which said in February in a filing with the U.S. Securities and Exchange Commission (SEC) that it may not be able to continue trading.
“Due to our expected operating losses and cash burn for the foreseeable future and recurring operating losses, if we are unable to raise sufficient capital through debt or equity arrangements additional, there will be uncertainty regarding our ability to maintain sufficient liquidity to operate our business effectively,” the filing said.
Shortly after, the company named Andy Main as its new CEO. It announced that the proceeds from a capital increase and its plans to reduce cash outlays and other related cost savings had “mitigated the conditions” that were raising doubts about Bakkt’s future.
Last month, Bakkt said it was dismissal of 28 workersor 13% of its non-call center staff, while also announcing that Charles Goodroe will leave his position as Bakkt’s accounting director.
“The workforce reduction is part of a broader strategic review of the company’s operations that aims to more effectively align resources with business priorities,” the company said in an SEC filing.
Also last month, Bakkt noted that institutional investors were poised to play a larger role in the cryptocurrency trading market, sparked by the SEC’s approval of Bitcoin exchange-traded funds (ETFs).
This came as the company released its first quarter results, showing that cryptocurrency trading volume increased 324% from the previous quarter, “driven by exceptionally strong customer trading activity,” indicates Bakkt’s results presentation.
“As evidenced by our first quarter trading volumes, we have started to see positive green shoots in the market and the overall demand environment is improving, with more industrial activity, higher part prices and higher overall retail transaction volume,” Main said at the time. .