BAKKT gains $500m in crypto custody
Bakkt Holdings, Inc. has gained half a billion U.S. dollars in cryptos under custody after completing the Apex Crypto acquisition process.
The acquisition of Apex Crypto is the latest significant change in Bakkt aimed at expanding the clients’ drive scale and verticals and bolstering the path for greater profit margins. Bakkt acquired the new addition at a $150 million fee, a $40 million bonus option, and 500 million crypto custody.
Bakkt Holdings, Inc., the American corporation listed on the New York Stock Exchange (NYSE) under the ticker symbol BKKT, attracted much attention when it first launched in 2019. However, the company suffered massive blows later that year and has been fighting to keep its head above the water despite the recorded losses.
In 2022, the establishment incurred a loss of $2 billion, $1.8 billion being in crypto alias “intangible assets impairments” and $100 million of actual losses in Q4. Bakkt has restructured, laid off some officials, and accepted others to create a new reputation.
Will Bakkt get back on track?
Bakkt CEO, Gavin Michael, said that acquiring Apex Crypto will help the company exploit the 5.8 million crypto-enabled accounts held in Apex Crypto and allow Bakkt to establish itself as the best B2B2C provider. The move is designed to accelerate the company’s growth and strategy.
Apex Crypto offered integrated crypto trading and was built to cater to the evolving needs of neo banks, fintech, trading platforms, and their users.
The establishment has incurred losses in the past and recorded around $6 million in 2022. However, Apex Crypto has maintained impressive trading volumes, currently at $3 million, down from $9 million, but still high enough to indicate considerable demand for its product.
With $12.5 billion in crypto exchanged since its launch and 30 clients, Apex Crypto has offered a tangible scale since its purchase. Regardless of Apex’s transaction history, Bakkt will have a chance to offer its greatest products to more than 220 clients in Apex Fintech Solutions.
Bakkt expects that Apex Crypto will help in delivering revenue diversification in the company as it scales up through product innovation and development. 2 bitcoins settled futures have exchanged hands in April.
The company’s main aim has been providing such a future since its inception. These futures might be an alternative to CME’s fiat bitcoin futures, especially with Bakkt being supported by NYSE’s parent company, ICE, which owns 66.6% of stakes in Bakkt.
There are high hopes that Bakkt will stand the test of time after being trusted to hold crypto despite being a newcomer.
