Bakkt Secures Regulatory Approval to Acquire Apex Crypto for $155M
- Crypto company Bakkt has been given the green light by regulators in the United States to complete a $155 million acquisition of Apex Crypto LLC.
- In November last year, Bakkt announced its plans to buy Apex by paying $55 million in cash along with stock worth around $145 million at the time.
- The company will work to provide its technology solutions to the 220+ clients that the combined businesses of Apex Fintech Solutions serve.
- CEO Gavin Michael believes that the latest acquisition marks an “exciting new chapter for the company and opens up new opportunities.
Renowned digital asset platform Bakkt has recently received the green light from United States regulators to complete a $155 million acquisition of blockchain technology platform Apex Crypto LLC. On November 3, it revealed that the deal is for $55 million in cash and $100 million in stocks, stating that the parties have secured all required regulatory approvals.
Notably, in November last year, Bakkt announced its plans to buy the trading platform by paying $55 million in cash along with stock worth around $145 million at the time. However, it had to wait for approval from the New York Department of Financial Services (NYDFS).
As part of the transaction, Bakkt will work to provide its cutting-edge technology solutions to the 220+ clients that the combined businesses of Apex Fintech Solutions serve.
Gavin Michael, the CEO of Bakkt, believes that the latest acquisition marks an “exciting new chapter for Bakkt, significantly advancing portions of our crypto roadmap, helping us tap into a universe of 5.8 million crypto-enabled accounts, and further establishing Bakkt as the B2B2C crypto provider of choice.”
Apex Crypto, launched in 2019, allows fintech businesses to offer crypto investment services to clients. It is an integrated platform that manages execution, clearing, cost basis, tax services, and custody for its 30 clients. Interestingly, the company has brokered $12.5 billion in crypto asset trades since its launch.
This deal will likely accelerate Bakkt’s journey to profitability by giving the company revenue diversification and cost savings as it expands its product offerings. The announcement reads:
“Bakkt expects that this acquisition will accelerate its product innovation and development, with more advanced crypto solutions that will offer its partners expanded options and functionality. Joint capabilities will unlock new opportunities that appeal to the next generation of consumers, such as crypto rewards, as well as the potential to enter international markets through partners.”
Bakkt has changed its digital currency approach multiple times over the past few years, experimenting with various methods, including launching a Bitcoin futures trading service for institutional investors, acquisitions, and a direct-to-consumer cryptocurrency rewards program, among others. The company acquired the Digital Asset Custody Company (DACC) in 2019, a provider of custodial solutions.
But as of late, the business has decided to go with the so-called B2B2C approach, according to Michael. This strategy intends to deliver services to businesses, which subsequently provide services to retail users.
It is important to note that in October 2021, Bakkt went public on the New York Stock Exchange at $10 per share via a Special Purpose Vehicle Acquisition Agreement. The transaction valued Bakkt at $2.1 billion and provided $50 million in fresh capital. Soon after its listing on the NYSE, it partnered with Mastercard to integrate cryptocurrencies into its products, leading the company’s stock to soar by more than 100 percent. Since then, the stock’s market capitalization has fallen by 83% to $451 million.
As reported earlier by BitcoinWisdom, the crypto company noted that its available cash and liquid assets were worth about $315 million as of June 30, 2022.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
