Bakkt received a green light from US regulators to complete its $155 million acquisition of Apex Crypto, the company said in the press release on Monday. Bakkt said it expects the move would streamline its path to profitability and accelerate the company’s growth.
Bakkt to Pay $55m in Cash and $100m in Stock for Apex Crypto
Bakkt, a tech company operating a platform for managing digital assets, said it had obtained approval from regulators to acquire trading infrastructure provider Apex Crypto for $155 million. Bakkt will pay $55 million in cash and $100 million in stock to fund the acquisition.
“This 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.”
– said Gavin Michael, CEO of Bakkt.
Bakkt’s plan to buy Apex Crypto was first announced in November 2022, but the company had to wait for approval from the New York Department of Financial Services (NYDFS), which also holds a BitLicense and trust charter.
Founded in 2018, Apex Crypto is a crypto firm developing a turnkey platform that offers integrated trading and investing via licensing arrangements with brokers and financial advisors. With more than 30 clients and $12.5 billion, Apex is expected to facilitate Bakkt’s path to profitability by diversifying its revenue streams and delivering unique synergies.
Bakkt Positions for the Next Crypto Wave, Says CEO
The acquisition marks the next chapter for Bakkt, which went public in October 2021 through a deal with a special purpose acquisition company (SPAC). The company’s CEO, Gavin Michael, said in the press release that “crypto is here to stay” and that the new deal would help Bakkt position for the “next wave.”
Over the past few years, Bakt has tweaked its crypto strategy several times, trying different approaches such as launching a Bitcoin futures trading service for institutional investors, a direct-to-consumer crypto rewards program, and acquisitions, among other things. In 2019, Bakkt acquired a custodial solution provider Digital Asset Custody Company (DACC).
But now, the company has settled on the so-called business-to-business-to-consumer strategy (B2B2C), said Michael. This strategy aims to offer services to other businesses, who then provide services to retail users.
Earlier this year, Bakkt shut down its consumer-facing crypto rewards app, allowing companies to offer their customers crypto prizes. According to Michael, Bakkt is still helping clients manage their rewards programs.
This article originally appeared on The Tokenist
Top Gaining Stocks
Top Losing Stocks