Bakkt acquires Apex Crypto for $200M
Apex Crypto is a turnkey platform that allows fintech companies to offer crypto investments to their clients. Since its inception, Apex Crypto has brokered $12.5 billion worth of cryptocurrency transactions. Bakkt has acquired Apex Crypto LLC, a blockchain technology platform announced on April 3rd.
Key Takeaways
- Apex Crypto is a turnkey platform that allows fintech companies to offer crypto investments to their clients.
- Bakkt was founded by the Intercontinental Exchange in 2018.
- The acquisition of Apex is a strategic move allowing the company to expand its offerings.
- Completing Bakkt’s acquisition of Apex Crypto represents a significant step forward for the digital asset industry.
In November, Bakkt announced that it would pay $55 million in cash and an estimated $145 million in equity for its trading platform. This acquisition marks an exciting new chapter for Bakkt as significantly advances part of its crypto roadmap, unlocking a world of 5.8 million crypto-enabled accounts, and helping further establish Bakkt as a preferred B2B2C crypto provider.
Bakkt expects transactions to enhance the company’s path to return to profitability through product acceleration, revenue diversification, and cost synergies.
“Sharing functionality opens up new opportunities to appeal to the next generation of consumers, including not only cryptocurrency rewards but also the potential to reach international markets through our partners,”
the company said. Wrote in the announcement.
Bakkt, founded by the Intercontinental Exchange in 2018, began promoting Bitcoin BTC tickers for accredited investors on its $28,049 futures contract. Since then, the company has specialized in building crypto payment solutions, and APIs.
In October 2021, Bakkt went public on New York Stock Exchange and agreed to acquire a particular purpose company for $10 per share. The deal valued Bakkt at $2.1 billion and injected $50 million in new capital.
Immediately after going public, Bakkt’s stock price soared more than 100% on news of partnering with Mastercard to integrate cryptocurrencies into products. Since then, his stock has fallen 83%, and his market cap is $451 million.
With the acquisition, Bakkt aims to expand its offerings to include digital asset custody services, allowing it to provide a complete suite of institutional-grade infrastructure for digital assets. In addition, the deal will help Bakkt to accelerate its growth strategy and increase its market share in the rapidly growing digital asset market.
For Bakkt, acquiring Apex is a strategic move allowing the company to expand its offerings and appeal to a broader range of institutional clients. With its existing suite of products, including its physically-settled Bitcoin futures contracts, Bakkt has already established itself as one of the leading providers of institutional-grade infrastructure for digital assets.
However, by adding custodial services to its arsenal, the company can offer a complete solution that caters to the needs of asset managers, family offices, and other institutional investors.
Overall, completing Bakkt’s acquisition of Apex Crypto represents a significant step forward for the digital asset industry. With the increasing institutional interest in cryptocurrencies, the need for secure and reliable custody solutions has never been more pressing.
With its expanded suite of products and services, Bakkt is well-positioned to become a leading provider of institutional-grade infrastructure for the digital asset industry. The acquisition of Apex Crypto is a vital part of this strategy.