Bakkt announced on April 3 that it has completed the acquisition of blockchain technology platform Apex Crypto LLC. In November, Bakkt said it would pay $55 million in cash and about $145 million in stock for the trading platform.
Launched in 2019, Apex Crypto is an integrated platform that handles execution, clearing, custody, cost basis and tax services for 30 clients. Since its inception, the company has facilitated $12.5 billion worth of digital asset transactions. Bakkt CEO Gavin Michael said:
"This acquisition marks an exciting new chapter for Bakkt, significantly advancing parts of our crypto roadmap, helping us leverage 5.8 million crypto-enabled accounts, and further establishing Bakkt as a B2B2C crypto provider first choice." Bakkt said it expects the transaction to strengthen the company's path back to profitability through product acceleration, revenue diversification and cost synergies. "The joint capabilities will unlock new opportunities to engage the next generation of consumers, such as cryptocurrency rewards and the potential to enter international markets through partnerships," the company wrote in the announcement. Bakkt was created by Intercontinental Exchange in 2018, initially by facilitating Bitcoin, Futures contracts for qualified investors. Since then, the company has ventured into building crypto payment solutions and APIs.
In October 2021, Bakkt will list on the New York Stock Exchange at $10 per share through a special purpose vehicle acquisition agreement. The deal values Bakkt at $2.1 billion and injects $50 million of new capital into the company. Shortly after listing, Bakkt shares soared more than 100% on news of a partnership with Mastercard to integrate cryptocurrencies into its products. Since then, the stock has fallen 83%, giving it a market value of $451 million.
