Bakkt shares rise 30% as crypto platform considers sale

Shares of Bakkt rose as much as 30% on Friday after reports that the New York stock exchange-listed crypto marketplace is considering a potential sale. Earlier, Bloomberg reported that Bakkt engaged a financial advisor to look at several “strategic options” that may end up in a sale, or even a “breakup”.

Also read: Bakkt announces leadership shake-up ahead of financial release

According to the report, which cited people with knowledge of the matter, a final decision has not been made yet. Bakkt, valued at $255 million, could still choose to “remain independent”, it said. The company operates a crypto custody service and a trading platform that targets institutional investors.

Bakkt sale comes as crypto acquisitions rise

Shares of Bakkt rose as much as 30% to an intraday high of $24.74 after the news on June 7, according to Google Finance. The stock later pared those gains to close at $19.04 and is down 64% since January. Over the past year, the share price has touched a high of $68.75 and a low of $5.57

Bakkt’s gains are bolstered also by an announcement from the company on Friday that it roped in Crossover Markets to provide the technology needed to power its upcoming crypto electronic communication network, ‘BakktX’. In a statement, the firm’s chief commercial officer, Ray Kamrath, said:

“With the development of BakktX, we are positioning ourselves as an ideal partner for institutions seeking a compliant, qualified trading venue.”

Bakkt has not commented on its potential sale. Earlier this year, the Alpharetta, Georgia-based crypto platform said it had “substantial doubt” about its ability to continue as a “going concern” and could delist from the New York stock exchange. Bakkt went public via a merger in 2021.

During the March quarter, the company reported a net loss of $21.3 million, a 53% improvement on the $44.9 million net loss from a year earlier. Total revenues rose to $855 million from $13 million.

Also read: Robinhood announces acquisition of crypto exchange Bitstamp  

Bakkt’s sale comes as the crypto industry is seeing a surge in acquisition activity. Brokerage firm Robinhood recently revealed plans to buy crypto exchange Bitstamp for $200 million. U.S. Bitcoin miner Riot Platforms is also angling for a $950 million takeover of Canadian rival Bitfarms.

Cryptopolitan reporting by Jeffrey Gogo