Bakkt Series A estimated at $ 740 million; investor pressure increases before launch

Bakkt, the highly anticipated digital badet platform led by Intercontinental Exchange [ICE] The Series A financing cycle reached $ 740 million, according to The Block Crypto.

In August 2018, ICE, the parent company of the New York Stock Exchange, announced that Bakkt "would create an open and regulated global ecosystem for digital badets". Since then, the virtual money community has been eagerly awaiting its launch, which has been delayed. Later this year.

The platform's first round of funding, in December 2018, raised $ 182.5 million to expand its digital badet and Bitcoin service. [BTC] futures product. Investors in this cycle include groups such as the Boston Consulting Group, Goldfinch Partners, ICE, Microsoft Venture Capital, Pantera Capital, Protocol Ventures and Galaxy Digital.

Bakt's current valuation, estimated at $ 740 million, would mean that just under 25% of the shares of external investors were sold. Included in this list are the likes of Microsoft, Starbucks, Galaxy and Pantera.

Originally scheduled for January 2019, the CEO of ICE confirmed that the project would be postponed to a later date. The project is still in the balance, without confirmation from the Commodity Futures Trading Commission of the United States. [CFTC].

The suspended valuation of $ 740 million after Series A will raise the question of how investors will reduce their initial investment, given the lack of a confirmed launch date and the reluctance of the CFTC vis-à-vis -vis the decentralized currency.

In addition, the fees charged by Bakkt (US $ 0.5 per contract) are low compared to other cryptocurrency derivatives markets and the US stock markets.

Scott Hill, Chief Financial Officer of Bakkt, said earlier this year:

"Finally, our investment in Bakkt will generate $ 20 million to $ 25 million in expenses based on the first quarter rate of return."

The digital badet platform will need to be operational to maintain the current valuation and maintain investor control. Bakkt also spends a significant amount on recruitment and acquisition. In January, Bakkt acquired Rosenthal Collins Group (RCG), a commission-based futures dealer, welcoming RCG employees under its wing, while increasing its recruitment costs.

A source quoted by TheBlockCrypto said,

"It will be necessary to align many elements so that the investors obtain the returns which they generally expect for a series A."

In addition, ICE has stated that investors have the right to redeem shares, pursuant to their filing with the Securities and Exchange Commission [SEC]. This would mean that if the platform did not deliver, investors could withdraw their money rather than waiting for the regulators to relax and allow the stock market to function.

The source summed up Bakkt's enigma by stating:

"If I were looking to buy an emerging game play of regulated digital badet derivatives in the United States, I would look for cheaper alternatives, whose execution is even more advanced."