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Digital asset marketplace Bakkt is reportedly considering putting itself up for sale.
That’s according to a Friday (June 7) report from Bloomberg News, citing sources familiar with the matter. Those sources said Bakkt — which has a market value of around $300 million as of Friday — had been working with a financial adviser to weigh strategic options including a possible breakup.
PYMNTS has contacted Bakkt for comment but has not yet gotten a reply.
The Bloomberg report noted that some crypto firms are still feeling the effects of the industry’s 2022 meltdown, while others are considering expansion. For example, Robinhood Markets said last week it was acquiring the crypto exchange Bitstamp in a $200 million deal.
This has been a hectic year for Bakkt, which in February said in an U.S. Securities and Exchange Commission (SEC) filing that it might not be able to continue as a “going concern.”
“As a result of our expected operating losses and cash burn for the foreseeable future and recurring losses from operations, if we are unable to raise sufficient capital through additional debt or equity arrangements, there will be uncertainty regarding our ability to maintain liquidity sufficient to operate our business effectively,” the filing said.
Soon after, the company named Andy Main as its new CEO. He announced that the proceeds from a capital raise and its plans to reduce cash expenses and other related cost savings had “alleviated the conditions” that raised doubt about Bakkt’s future.
Last month, Bakkt said it was laying off 28 workers, or 13% of its non-call center staff, while also announcing Charles Goodroe will step down as Bakkt’s chief accounting officer.
“The reduction in force is a component of a broader strategic review of the company’s operations that is intended to more effectively align resources with business priorities,” the company said in a filing with the SEC.
Also last month, Bakkt noted that institutional investors were poised to play a bigger role in the cryptocurrency trading market, sparked by the SEC’s approval of bitcoin exchange-traded funds (ETFs).
This came as the company released first quarter earnings showing crypto trading volume increased 324% compared to the previous quarter, “driven by exceptionally strong client trading activity,” Bakkt’s earnings presentation said.
“As evidenced in our trading volumes in Q1, we’ve begun to see positive green shoots in the market and the overall demand environment improving, with more industry activity, higher coin prices and overall higher retail trading volume,” Main said at the time.
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