ICE’s institutional exchange, Bakkt, will be introduced on the stock market at a potential value of $2.1 billion.
The Intercontinental Exchange, owner of the New York Stock Exchange and the Bakkt Institutional Cryptocurrency Exchange, proposed an agreement that will see its crypto arm listed on the stock exchanges.
As announced in the Wall Street Journal, Bakkt is expected to combine with VPC Impact Acquisition Holdings, trading under the HIV ticker. VPC is a so-called special purpose acquisition firm, or SPAC. It is a shell company whose primary aim is to acquire or combine with another company and to allow it to be listed on the capital exchange without going through the long and costly process of an initial release.
Bakkt is expected to be estimated at $2.1 billion after the transaction is completed. The exchange would now collect an extra $532 million to fund the creation of the Bakkt App, a retail-centric wallet and incentive app.
A Bakkt spokesperson told Cointelegraph that the transaction is expected to be concluded in the second quarter of 2021. The combined business will be renamed Bakkt Holdings, Inc. and will be listed on NYSE. The representative also said that Bakkt was now focused on launching the app in March.
Rumors of the purchase, as reported by Cointelegraph, emerged earlier in January. Bakkt has seen a volume uptick this year, posting a series of successive milestones. However, it has a much lower business share in crypto than its competitor CME.
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