Bakkt has received the green light from US regulators to complete the $155 million acquisition of Apex Crypto, the company said in a press release on Monday. Bakht expects the move to ease the path to profitability and accelerate the company's growth.
Bakkt will pay $55 million in cash and $100 million in stock for Apex Crypto
Tech firm Bakkt, which operates a digital asset management platform, said it has received regulatory approval to acquire trading infrastructure provider Apex Crypto for $155 million. Bakkt will pay $55 million in cash and $100 million in stock to finance the acquisition.
“This acquisition marks an exciting new chapter for Bakkt, significantly advancing part of our crypto roadmap, gaining access to 5.8 million crypto-enabled accounts and helping to further solidify Bakkt as a preferred B2B2C cryptocurrency provider.”
CEO Gavin Michael said.
Bakkt's plan to acquire Apex Crypto was first announced in November 2022, but the company had to wait for approval from the New York City Department of Financial Services (NYDFS), which also has a BitLicense and Credit Card. trust.
Founded in 2018, Apex Crypto is a cryptocurrency company that creates a turnkey platform that offers integrated trading and investing through licensing agreements with brokers and financial advisors. With more than 30 clients and $12.5 billion in assets, Apex is expected to streamline Bakkt's path to profitability by diversifying revenue streams and providing unique synergies.
Bakkt positions itself for next wave of cryptocurrencies, 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 a press release that "cryptography is here to stay" and the new deal will help the speaker prepare for the "next wave."
Bakt has adjusted its crypto strategy several times in recent years, trying different approaches such as launching a Bitcoin futures trading service for institutional investors, a cryptocurrency rewards program aimed at consumers, and other acquisitions. In 2019, Bakkt acquired custody solutions provider Digital Asset Custody Company (DACC).
But now the company has opted for a so-called business-to-business (B2B2C) strategy, said Michael. This strategy aims to provide services to other businesses, which in turn provide services to retail users.
Earlier this year, Bakkt shut down its consumer crypto rewards app, allowing companies to offer crypto rewards to their customers. According to Michael, Bakkat continues to help clients manage their rewards programs.
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About the author
Tim Fries is the co-founder of The Tokenist. Have a degree. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner in RW Baird's US private equity group and co-founded Protective Technologies Capital, an investment firm specializing in sensor, security and control solutions.