Intercontinental Exchange Inc., or ICE, will make its cryptocurrency venture public by merging it with a special purpose acquisition company, a business that will further its goal of launching a consumer app to trade and make payments with digital assets.
The venture, called Bakkt, is expected to have a $ 2.1 billion valuation after the merger with VPC Impact Acquisition Holdings is completed, the companies said on Monday.
The deal brings together two of the most important pieces in the current markets: cryptography and SPACs. the largest digital currency, last week rose above $ 40,000 for the first time, and SPACs had their biggest year in 2020, raising a record $ 83 billion in new listings, according to data provider SPACInsider. SPACs, also called blank check companies, are vehicles that go public to raise money for mergers and acquisitions.
As part of the deal, Bakkt will raise an additional $ 532 million from VPC funds and a simultaneous capital increase. This will support the development and marketing of the Bakkt App, which is designed as a tool to allow people to manage their holdings of various digital assets. This could include bitcoin, loyalty points and reward programs, such as those offered by Starbucks Corp. and airlines, and virtual video game assets.
More than 400,000 people have previously registered for the app, which is expected to be released to the public in March, says Bakkt. Bakkt projects that the app will accumulate more than 30 million users in five years, according to a presentation on the deal released on Monday. This ambitious goal would put Bakkt in the same league as other successful financial apps, like Robinhood, Venmo or Cash App from Square Inc.