- Bakkt is rumoured to go public by way of a merger with VPC Impact Acquisition Holdings, which is affiliated with Victory Park Capital
- On completion of the merger, its valuation is estimated to touch more than $2 billion
- A surge of 64% was witnessed by the special purpose acquisition company (SPAC) after reports of a probable merger emerged
Bakkt Engrossed in Deep Discussions About Merger
Bakkt, a cryptocurrency exchange platform owned by Intercontinental Exchange (ICE) in its majority, is reportedly looking at a possible amalgamation through a merger with VPC Impact Acquisition Holdings. The latter is a special purpose acquisition company (SPAC) associated with Victory Park Capital. Last September, VPC was able to acquire $200 million through its Initial Public Offering (IPO).
A story published by Bloomberg on 7th January suggests that according to unnamed sources, Bakkt is taking forward its discussions with VPC about a possible merger, and an official announcement might be released in the coming week.
Rumored Merger Holds a Promising Future
As a platform for cryptocurrency trade, Bakkt allows users to trade as well as store futures contracts physically. This translates to users being able to acquire exposure to bitcoins without holding the principal cryptocurrency. Along with this, the company is in the process of programming and developing an application on the grounds of providing access to retail-based services for a variety of digital assets.
The crypto exchange platform recently launched its first completely regulated options contract for digital currency, and witnessed the growth of $286 million with respect to its trade value in the past week. Investments of about $300 million have been made in the company, from firms like Boston Consulting Group, Pantera Capital, CMT Digital Ventures and Galaxy Digital, among other investors.
The talks of a merger with VPC can be viewed as having a positive future, taking into consideration Bakkt’s growing trade value and VPC’s recent share trade value of $17.11, which culminates to a 64.36% surge in the market. This development took place right after news of a merger between the two began to circulate.
VPC’s CEO and Chairman John Martin attributes the company’s strategy for value creation to being focused on ascertaining future partners who will be ensuring the company’s growth in the sector of financial technology.
If this merger develops into an actual integration, both the company’s will be looking at a profitable future wherein the business will be able expand their current reach and evolve into becoming prominent platforms in the cryptocurrency industry.
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