- Bakkt finalizes its $200 million payment for the acquisition of Apex Crypto.
- The firm believes this acquisition will yield great rewards and lead to profitability.
- Bakkt paid $55 million in cash and $145 million worth in stock for its ownership of Apex Crypto.
In what has become a successful transaction between Bakkt and Apex Crypto, Bakkt has announced its completion of the payment required to acquire Apex Crypto.
On April 3, Bakkt publicly announced its acquisition of Apex Crypto LLC. In November 2022, Bakkt decided to acquire Apex, known as it agreed with Apex Crypto. The firm was to pay $200 million for the acquisition, splitting the payment of the fees into two methods.
Bakkt stated that it would pay the trading platform $145 million worth of stock and $55 million in cash as the completion of the payment fee was estimated to have been made by the first half of 2023.
Founded in 2019, Apex Crypto is a turnkey platform responsible for the custody, clearing, execution, and tax services for its 30 clients. Since its launch, the firm has traded over $12.5 billion in cryptocurrency, giving it an attractive portfolio for Bakkt’s acquisition.
The CEO of Bakkt, Gavin Michael, believes that the ownership of Apex will bolster the company’s ethics, profits, and audience reach.
“The acquisition marks an exciting new chapter for Bakkt, impressively advancing portions of our crypto roadmap, assisting us in tapping into a world of 5.8 million crypto-enabled accounts, and further establishing Bakkt as a B2B2C crypto provider of choice,” he said.
Bakkt has high hopes for its merger with the crypto trading platform as it was developed to satisfy the growing demands of fintech, neo banks, trading apps, and their clients. The acquisition of Apex will strengthen Bakkt’s journey to profitability and provide revenue diversification and synergies as it scales its offerings.
“Joint capabilities will open new opportunities that attract the next generation of consumers, such as crypto rewards and a chance at entering the international market through partners,” the announcement reads.
Launched in 2018 by Intercontinental Exchange, the company began by trading Bitcoin (BTC) futures contracts for verified investors and has since moved into developing APIs and crypto payments solutions.
The company expects that acquiring Apex Crypto will help offer its platform solutions to the clients served by the joined businesses within Apex Fintech Solutions.
In October 2021, after debuting on the New York Stock Exchange (NYSE) at $10 per share, Bakkt went public through a deal with a Special Purpose Acquisition Company (SPAC). The merger deal placed Bakkt at a valuation of $2.1 billion. However, the company’s stock has diminished, with a current market cap of $451 million.
Conclusion
The acquisition of Apex Crypto has the potential to yield good results for Bakkt as the company has mainly gained from its powerful partnerships with companies in the fintech world.
