Markets
Bakkt is reportedly considering selling the crypto platform
Digital Asset Market Bakkt it is reportedly considering putting itself up for sale.
This is according to reports on Friday (June 7) relationship by Bloomberg News, citing sources familiar with the matter. Those sources said Bakkt — which had a market value of about $300 million as of Friday — had been working with a financial advisor to evaluate strategic options, including a possible breakup.
PYMNTS reached out to Bakkt for comment but has not yet received a response.
Bloomberg’s report found that some cryptocurrency firms are still feeling the effects of the industry’s meltdown in 2022, while others are considering expansion. For example, Robinhood Markets said last week it would acquire the cryptocurrency exchange Bitstamp in a $200 million deal.
This has been a hectic year for Bakkt, which said in a U.S. Securities and Exchange Commission (SEC) filing in February that it may not be able to continue as a going concern.
“Due to anticipated operating losses, cash burn for the foreseeable future and recurring losses from operations, if we are unable to raise sufficient capital through additional debt or equity arrangements, there will be uncertainty regarding our ability to maintain sufficient liquidity to operate our business effectively,” the document reads.
Soon after, the company named Andy Main as its own new CEO. It announced that proceeds from a capital raise and its plans to reduce cash outlays and other related cost savings had “alleviated conditions” that raised doubts about Bakkt’s future.
Last month, Bakkt said yes firing 28 workersor 13% of non-call center staff, also announcing that Charles Goodroe will step down as Bakkt’s chief accounting officer.
“The reduction in force is one component of a broader strategic review of the company’s operations that is intended to more effectively align resources with business priorities,” the company said in a document filed with the SEC.
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 first-quarter earnings, showing that cryptocurrency trading volume increased 324% from the previous quarter, “driven by exceptionally strong customer trading activity,” the presentation reads of Bakkt’s profits.
“As evidenced by our trading volumes in the first quarter, we have started to see positive signs in the market and an improvement in the overall demand environment, with increased industry activity, higher coin prices and overall higher retail trading volume high,” Main said at the time. .