On Monday, Bakkt — a regulated Bitcoin futures exchange — is scheduled to list on the New York Stock Exchange, less than a year after it began offering physically settled Bitcoin futures to U.S. investors.
Bakkt announced that it had merged with VPC Impact Acquisition Holdings, a special purpose acquisition company.
The combined firm is now known as Bakkt Holdings, Inc., and Bakkt’s Class A common stock and warrants will begin trading on NYSE on October 18, 2021, under the ticker symbols “BKKT” and “BKKT WS,” respectively.
Linking the digital economy
“Today is a momentous occasion for Bakkt. The completion of the company combination provides us with the money necessary to continue doing what we do best, which is innovate,” Gavin Michael, Bakkt chief executive officer, said.
“We are excited to embark on this new chapter and look forward to accelerating our growth plans and furthering our purpose of linking the digital economy,” Michael added.
Bakkt received gross proceeds of about $448 million as a result of the company consolidation.
The proceeds of the transaction are intended to be utilized to finance investments in the firm’s platform capabilities and marketing initiatives, as well as to expedite current and future partnerships, which the company anticipates will considerably fast-track the business’s growth trajectory.
Missing revenue forecasts
Meanwhile, the exchange may not be the most profitable option for those seeking exposure to the cryptocurrency market. Bakkt traded less than $10 million in futures volume on Friday, statistics showed.
Binance and OKEx, by comparison, recorded volumes exceeding $25 billion and $7 billion, respectively, yesterday.
Additionally, several analysts stated that the exchange has fallen short of revenue forecasts by several percentage points. Bakkt expected $900 million in revenue for fiscal year 2021 in January, the company said.
“It’s October already, and there is ample evidence that they miss by 90%. This becomes abundantly obvious in the current year’s third quarter earnings,” analysts said.
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