SPAC to Help Bakkt Crypto Exchange Debut on Stock Markets
According to recent reports, Bakkt has made a promising and joyful announcement for its users and the entire crypto-community. Bakkt has announced to its followers and the entire cryptocurrency community that it has managed to get listed for the stock markets.
The news comes after a successful deal that has been agreed upon between the entities involved in the launch of the stocks. The deal has been struck between the institutional cryptocurrency exchange Bakkt and the New York Stock Exchange (NYSE). As a result of the deal, the cryptocurrency will its stock arm listed in the stock markets
According to the news from the Wall Street Journal, Bakkt is going to merge with VPC Impact Acquisition Holdings. At the moment, the VPC Impact Acquisition Holdings is being traded in the stock markets under the name “VIH”. VPC Impact Acquisition Holdings claims to be a special purpose acquisition company and goes by the short name “SPAC”.
SPAC exists as a shell company whose only purpose is to facilitate other companies in order to buy or merge with them. By purchasing and merging with other companies, SPAC helps them to get their stock arm listed in the stock markets. If the companies choose to launch their stocks through SPAC, then they do not have to go through the expensive and lengthy processes.
One of the lengthiest processes of launching stocks into the stock market is to proceed with the “Initial Public Offering – IPO”.
If the deal between Bakkt cryptocurrency exchange and VPC goes as planned, Bakkt would see its value grow all the way up to $2.1 billion. It has been confirmed by the exchange that once the merger takes place, it will start working on more projects to get more exposure.
The exchange has announced that it will be raising an additional $532 million to pursue new projects and to achieve developments. One of the main projects that the exchange currently has is the developments in the Bakkt application. The application will act as a rewards application as well as a retailer-centric wallet.
The rumors of the exchange going public started emerging from the start of the year 2021. From the start of the year, the exchange has started posting achievements with respect to investments and user-base. It announced that it has experienced a significant surge in its transaction volumes over the course of time.
Therefore, it was expected of the exchange to set foot into the stock markets but with the help of a facilitator, which in this case has been VPC Impact Acquisition Holdings.
Many economic analysts have stated that although the company has been making a lot of progress and developments, yet it has a very small crypto-market presence as compared to CME, which is its rival.