Bakkt Holdings Inc. Considers Strategic Options Amid Rising Crypto M&A Activity

Bakkt Holdings Inc., the digital-asset marketplace launched by the parent of the New York Stock Exchange, is exploring a potential sale or breakup amid a spike in crypto-related takeover activity, according to people familiar with the matter.

The move comes as consolidation activity heats up in the digital-asset sector, with crypto prices back near record highs. Bakkt, which offers a suite of services including trading and custody, went public through a merger with a blank-check vehicle in 2021. The company posted a first-quarter loss of $21 million on $855 million in revenue.

Bakkt has been working with a financial advisor to weigh a range of strategic options, including a breakup, said the people, who asked to not be identified because the details aren’t public. The sources revealed that Bakkt is considering various options to maximize shareholder value as the company navigates the rapidly evolving digital asset market.

Bakkt shares rose 15% to $22.33 on Friday and are up about 27% this week, giving the company a market value of around $300 million. Despite this recent increase, the stock has fallen about 30% over the past year.

The potential sale of Bakkt comes as the company faced the risk of being delisted from the NYSE earlier this year after disclosing that it might not be able to continue as a going concern. The company also recently announced a partnership with Crossover Markets to develop a crypto electronic communication network (ECN).

One of Bakkt’s valuable assets is its BitLicense from the New York State Department of Financial Services, which allows it to operate in the state. Other major participants in the industry who have been cleared to do business in New York include crypto exchange Coinbase Global Inc., stablecoin issuer Circle, and Jack Dorsey’s digital payment firm Square.

As Bakkt explores its strategic options, the company remains committed to its mission of advancing the adoption of digital assets and providing a secure and regulated platform for consumers and institutions to buy, sell, and store digital assets.