Crypto Firm Bakkt Reports $1.5B in Impairment Losses in Q3

Georgia-based crypto trading company Bakkt Inc has released the results of its third quarter ending September 30, showing a net revenue of $12.9 million increase of 41% year-over-year.


The trading platform said its impressive net revenue was born out of an improvement in travel loyalty redemptions.

Though the immediate impacts of the crypto winter had abated in Q3, most crypto firms still faced notable headwinds during that period. 

For Bakkt, it said its operating expenses came in at $1.6, a figure that soared year over year. According to the New York Stock Exchange-listed firm, the bogus expense was fueled by the $1.5 billion impairment it recorded “due to the elongated timing for expected cryptoasset product activations and the decline in our market capitalization.”

Overall, Bakkt said its business saw significant growth with a total transaction account of 678,000, an increase of 21% year-over-year. 

“Our focus on execution is paying off and we are proud to have initial activations with our crypto capabilities. We are working closely with our partners to bring even more of them to market in the near term,” said Bakkt CEO and President Gavin Michael said in a statement.

Bakkt made the news recently when it unveiled it has signed an agreement to acquire Apex Crypto LLC, a subsidiary of Apex FinTech Solutions Inc. The transaction was valued at $200 million and is billed to steer the company into the digital currency payment ecosystem, and constituted a major highlight of the firm’s business for the third quarter.

“We are thrilled about the signing of the acquisition of Apex Crypto, which we expect will accelerate our growth plans post-close as it will significantly expand our client verticals and cryptocurrency product offering. We believe that Apex Crypto will be highly complementary with our platform and the acquisition will ultimately help us deliver long-term sustainable value for our partners, customers, and shareholders,” Gavin said.

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Bakkt Has Agreed to Acquire Apex Crypto for $200M

Publicly listed Bitcoin firm Bakkt has agreed to pay the sum of $200 million as it looks to acquire Apex Crypto LLC, a subsidiary of Apex FinTech Solutions Inc.


By being a part of the Bakkt brand, Apex Crypto will help to bolster the business operations of the parent firm, drawing on its unique infrastructure to help bridge the gap between companies in the mainstream sector and those in crypto.

According to the terms of the deal, Bakkt will be paying the sum of $55 million in cash outright while paying $45 million when Apex Crypto meets its financial targets for the end of the Fourth Quarter (Q4) this year.

“We found a unique asset in Apex Crypto, which will expand our crypto client base, provide us with faster speed to market for new crypto capabilities, and serve as an additional avenue for continued sales to a crypto-savvy audience through Apex Fintech Solutions,” said Gavin Michael, CEO of Bakkt. 

“With the addition of this complementary business, we believe we are poised to be a crypto provider of choice for financial institutions, fintechs, merchants or loyalty programs that want to offer seamless crypto experiences to their customers. It’s also expected to enable us to unlock more innovative opportunities that appeal to the next generation of consumers such as crypto rewards and NFTs.”

Bakkt went public on the New York Stock Exchange (NYSE) back in October last year, setting a whole new agenda for the company in the Web3.0 world. The company has not sat on its oars over the past few years, launching innovative products to serve both its institutional and retail customers.

From partnering with Starbucks to floating a crypto product with Galaxy Digital, Bakkt has ingrained its footprint across the length and breadth of the digital currency ecosystem. The deal with Apex Crypto will contribute to bolstering these footprints when it closes following regulatory approvals.

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