Reports suggest that Bakkt Holdings, the digital-asset marketplace created by the parent company of the New York Stock Exchange (NYSE), is contemplating a potential sale in response to increased acquisition activity in the crypto sector.

Bakkt’s Evaluation of Possible Actions

According to sources cited by Bloomberg, Bakkt has enlisted the help of a financial advisor to investigate various strategic alternatives, including a potential breakup, though a final decision has yet to be reached.

Intercontinental Exchange (ICE) introduced Bakkt amid high expectations, with significant partnerships with Starbucks and Microsoft drawing attention. The venture had Kelly Loeffler as its inaugural CEO, who later became a US Senator for Georgia. Earlier this year, Bakkt faced concerns about its sustainability and the risk of delisting from the NYSE.

Bakkt, offering trading and custody services, enters the market amidst consolidation in the digital asset space. Despite this, rising crypto prices are prompting industry players to consider expansion or recover from the previous downturn.

Exploring the Possibility of Breakup

Bakkt went public in 2021 through a merger and reported a loss of $21 million on revenue of $855 million in the first quarter of this year. Recently, Bakkt partnered with Crossover Markets to develop a crypto electronic communication network (ECN) to enhance its offerings.

Bakkt has a valued BitLicense from the New York State Department of Financial Services, necessary for operations within the state. Following their recent developments, Bakkt’s stock price surged by 15% to $22.33 on Friday, marking a 27% increase for the week but experiencing a 30% dip over the past year.

As Bakkt weighs its strategic options, including a potential sale in response to heightened activity in the crypto market, the company faces a critical juncture. With a range of services, regulatory approvals, and recent partnerships, Bakkt stands as a significant player in the industry, prompting keen observation from market participants about its future trajectory and independence.

The current total market capitalization of the cryptocurrency space has slipped below $2.5 trillion, mainly due to a decrease in Bitcoin’s price, dropping from $71,000 to around $69,000.

Image source: Shutterstock, chart from TradingView.com