Cryptocurrency Exchange

Bakkt increases its Series A at valuation topping $700 million


As per the recent sources close to the project tell The Block, Bakkt, ICE’s yet-to-launch crypto exchange, following its Series A funding round is recently planning to get itself valued somewhere in $700 million.

Bakkt can at present upsurge its pre-money assessment to $1 billion at its next increase. It can then sell a series of similarly-priced favored shares without weakening itself much; in other words, raise considerable capital without giving up a lot of the equity.

ICE’s yet-to-launch cryptocurrency exchange has increased $182.5 million in 2018, diving a expectations trading platform geared at organizations. Its estimated amount is $740 million post-money assessment means ICE might have sold till 25% of shares to exterior investors such as Galaxy, Pantera, Microsoft, and Starbucks the latter having underwritten no capital in return.
After the money valuation is a firms value after outside bankrolling and/or capital injections are further made to its balance sheet. In this example, it also comprises the equity allocated to Starbucks related to their collaboration.

As per a spokesperson of the company“From a cash-flow perspective, Bakkt will not be earning much based on their proposed contract fees, so they really need a lot of volumes a lot of things will need to line up for investors to receive returns that they would typically expect for a Series A.”

According to their SEC filing, incase Bakkt dismiss from giving on its plan to garner institutional acceptance or look out for a different cash-flow sources investors have equity improvement rights offered by ICE. Page 60 notes “non-ICE partners in Bakkt hold a put option to need us to repurchase their interests subject to certain terms.” Postponements in implementation might let the investors realize this trigger and exit their put.

Now, a key question is how investors will make their projected returns based on their $740 million post-Series A valuation given the current regulatory barriers and a five-month delay in launching. Indeed, Bakkt’s proposed fee of $0.50 per contract is rather small, some equating it to less than 1 basis point. The next cheapest U.S. trading option is currently at 8 basis points.


With BLOCKTV, Berkovitz comforted the cryptocurrency community that the body is dedicated to releasing the market from deception and influence rather than shelling down new expertise.
He states:

The CFTC is pro-innovation. We do not have an anti-crypto or an anti-blockchain attitude. We are not out to get new technology. We are out to get the bad guys.

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