Bakkt Digital Assets Plans To Acquire Apex Crypto For $200 Million

Bakkt, a digital asset marketplace, is going to purchase Apex Crypto for $200 million.
The company said the acquisition is anticipated to diversify and boost Bakkt's revenue as it scales its operations.
Bakkt initially offered Bitcoin futures contracts only to qualified investors.

04-Nov-2022 By: Anirudh Trivedi

Bakkt, a digital asset platform, has agreed to acquire Apex Crypto, LLC from Apex Fintech Solutions, Inc. As per the terms of the agreement, Bakkt will pay $200 million for Apex Crypto, with the first payment of $55 million due at the closing of the transaction.

Apex Crypto, which debuted in 2019, is a "turnkey platform" dedicated to integrated crypto trading. The platform is designed to fulfil the growing expectations of more than 30 fintech organisations and their growing clients.

Apex Crypto was created to help investors move from trading stocks to trading cryptocurrency by providing efficient account opening and financing alternatives. Meanwhile, addressing complex crypto-related regulatory and licencing obligations.

Bakkt's acquisition of Apex Crypto is expected to expand its cryptocurrency product offering and client base to include fintech firms, trading app platforms, and neo-banks, while also giving crypto solutions to Apex's 220+ clients.

The combined effort is designed to speed up product development and innovation for crypto products like staking, external transfers, and non-fungible tokens (NFTs). Overall, the transaction is intended to increase and diversify Bakkt's revenue as it expands its offerings.

Bakkt, which was launched by the Intercontinental Exchange in 2018, initially provided Bitcoin futures contracts only to approved investors. In March 2021, the platform unveiled a payments app that allows users to utilise cryptocurrency to make purchases, with the goal of increasing consumer spending, lowering payment costs, and strengthening retailer loyalty programs.

Bakkt's expansion seems to be slower than many in the field anticipated. The platform began with an emphasis on institutional crypto adoption before turning to retail-focused apps and institutional-facing Bitcoin futures contracts.

In October 2021, Bakkt went public through a merger with VPC Impact Acquisition Holdings, a special purpose acquisition firm. At the time of the launch, BKKT shares were trading on the New York Stock Exchange for $9.45 but are now trading at $2.00 at the time of writing.

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