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Some crypto news came out today that some might find interesting. We might see quite a few crypto companies going public in 2021. I predicted this on a recent blog post.
Shares of VPC Impact Acquisition Holdings (Ticker VIH), a SPAC (blank-check company), have soared after news emerged that it was negotiating a merger with the cryptocurrency exchange Bakkt.
According to Bloomberg, The merger between the two companies will value the new entity at more than $2 billion. An announcement is expected as early as next week.
(Update 10/25/2021- Bakkt Stock has more than doubled since I wrote this. Surging to $30 today on partnership news)
In September, Bakkt launched its first regulated Bitcoin futures exchange. It went on to launch a fully regulated options contract for Bitcoin futures in October.
Bakkt raised $300 million last year from ICE as well as other investors and acquired Bridge2Solutions, a company that provides loyalty solutions, noted Bloomberg.
The SPAC is affiliated with Victory Park Capital. SPACs are quite hot at the moment as a way to bring companies public.
According to April 26, 2019 filings by the company. Galaxy Digital made a 4th quarter investment (Series A) into Bakkt. From the filing – Bakkt Holdings, LLC, a company which is building an open, seamless global network to enable customers and institutions to buy, sell, store and spend digital assets ($5.0 million)
Bakkt is listed as a “Unicorn” on the Crunchbase website. The total A round 182.5 million from 14 different investors. Bakkt has raised a total of $482.5M in funding over 2 rounds. Their latest funding was raised on Mar 16, 2020 from a Series B round.
Analysis: It seems that crypto related stocks will be taking advantage of the bull market. I would expect to see more of this, and SPACs make sense as a way for it to happen. VIH already has moved up by over $5 dollars on the news. I would expect if the rumor is true, then VIH / Bakkt could be a stock to own in your portfolio for the long term.
Disclosure, as of the time of this writing I have positions in GLXY and VIH. I am not a professional and this is not advice. Do your own research.
Also published on Medium.