On Apr. 3, blockchain technology platform Bakkt announced that it completed its acquisition of Apex Crypto LLC. Previously, in November 2022, Bakkt stated it would pay $55 million in cash and stock, worth an estimated $145 million at the time, for the deal.
Launched in 2019, Apex Crypto is an integrated trading platform that handles execution, clearing, custody, cost basis, and tax services for its 30 clients. The firm has facilitated $12.5 billion in digital assets trades since inception. Gavin Michael, CEO of Bakkt, commented on the completion:
“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.”
Bakkt said it expects the transaction to bolster the company’s path back to profitability through product acceleration, revenue diversification and cost synergies. “Joint capabilities will unlock new opportunities that appeal to the next generation of consumers, such as crypto rewards, as well as the potential to enter international markets through partners,” the firm wrote in its announcement.
Created in 2018 by Intercontinental Exchange, Bakkt started out by facilitating Bitcoin (BTC) futures contracts for accredited investors. Since then, the firm has branched into building crypto payments solutions and APIs.
In October 2021, Bakkt went public at $10 per share on the New York Stock Exchange via a Special Purpose Vehicle Acquisition agreement. The deal valued Bakkt at $2.1 billion and infused the firm with $50 million in fresh capital. Shortly after the listing, Bakkt shares soared more than 100% on news of a partnership with Mastercard to integrate cryptocurrencies into its products. The stock is down 83% since then with a market cap of $451 million.