Crypto IPO alert - Bakkt going public.
Intercontinental Exchange-- owned Bakkt said on Monday it has actually accepted go public through a merger with blank-check firm VPC Effect Acquisition Holdings, providing the cryptocurrency platform an enterprise value of $2.1 billion. The offer is anticipated to supply Bakkt, established by outgoing Georgia Senator Kelly Loeffler and backed by Microsoft and Boston Consulting Group, with $207 million in cash and $325 million from other investors, including $50 million from ICE. The rush to go public comes as the need for Bitcoin and other digital tokens from retail financiers rise as they look for quick gains in a world of ultra-low yields and negative interest rates. After scaling a record high of $40,000 against the dollar on Jan. 7, Bitcoin, the world's most popular digital currency, struck a one-week low to $33,447 on Monday, showing wild price swings in cryptocurrency exchanges. Cryptocurrency platform Coinbase had in December confidentially applied to go public, a move that might make it the first such exchange operator in the United States to note on the stock market. Stock market debuts by such trading platforms are likewise likely to provide more reputation to digital properties amongst regulators and skeptics. Blank-check firm VPC had raised $200 million through a going public (IPO) last year. SPACs are shell business that raise money through an IPO to take another business public within 2 years. Such mergers have ended up being a popular option for companies seeking to go public, with over 200 SPAC deals collectively raising more than $70 billion in equity last year. Post-merger, the combined company will be renamed Bakkt Holdings and will be noted on the New York Stock Exchange.