Home » ICE takes $1.1 billion write down for stake in crypto platform Bakkt

ICE takes $1.1 billion write down for stake in crypto platform Bakkt

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Intercontinental Exchange (ICE) writes off $1.1 billion on its holdings of cryptocurrency platform Bakkt (BKKTMore) according to the SEC filing late Friday afternoon.

Atalanta-based Bakkt, which offers cryptocurrencies and other digital assets to institutional investors, reported $150 million to $160 million in intangible assets, plus a loss of $1.3 to $1.4 million in goodwill. suffer a loss.

Cryptocurrencies are considered intangible assets under Generally Accepted Accounting Principles (GAAP).

Bakkt was founded by Intercontinental Exchange in 2018. The first use cases for its technology platform were Bitcoin, other cryptocurrencies and Bitcoin futures contracts.

In January 2021, Bakkt announced plans to go public through a merger with Special Purpose Acquisition Company (SPAC) VPC Impact Acquisition Holdings. At the time, the company was valued at $2.1 billion.

Gavin Michael, CEO of Bakkt, attends the listing of his company Bakkt on the New York Stock Exchange (NYSE) in New York City, USA on October 18, 2021. REUTERS/Brendan McDermid

ICE held a 68% economic interest in Bakkt upon its listing on the New York Stock Exchange on October 15, 2021.

Shortly thereafter, Bakkt announced a partnership with Mastercard to issue cryptocurrency debit and credit cards.

Since then, the value of cryptocurrencies has plummeted. Bitcoin, for example, fell 66% from $61,548 to $20,636 per coin, but trading volume fell 18%, according to cryptocurrency indexers. Nomics.

During the same period, ICE’s share price fell 30% from $138.8 to $95.40, while Bakkt’s share price fell more than 76% from $42.52 to $2.17.

August, Bakkt CEO, Gavin Michael joins Yahoo Finance The company was considering cryptocurrencies “at a slightly conservative pace.”

Bakkt shares rose one point in after-hours trading on Friday. ICE’s stock price has fallen by a similar amount over the same period.

David Hollerith is a senior reporter at Yahoo Finance covering cryptocurrencies and stock markets. Follow him on Twitter. @DsHollers

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