Bakkt buys Apex Crypto for USD 155 million
US-based digital asset marketplace Bakkt has received regulatory approval to acquire trading infrastructure provider Apex Crypto for US$155 million.
According to Yahoo, this represents one of the largest trades in crypto since the start of the bear market in 2021. As part of the deal, Bakkt will pay $55 million in cash as well as $100 million in stock. Bakkt worked with its regulator, the NYDFS, to complete the deal, and according to the same source, the acquisition of Apex represents a path to profitability as the company looks to strengthen its position after the crypto winter.
Founded in 2018, Bakkt has tackled the crypto market in various ways, including offering Bitcoin futures trading to institutional investors, as well as a direct-to-consumer crypto-powered rewards program. Company representatives quoted by Yahoo revealed that Bakkt has now decided on a business-to-business-to-consumer strategy, which means that it offers its services to other businesses that serve private customers in turn. They also outlined that Apex could help Bakkt expand into overseas markets as some of their existing fintech customers operate internationally.
As for Apex Crypto, its business model is similar to Bakkt’s as it allows other businesses to implement crypto trading into their services. In particular, Apex Crypto offers its clients a solution for execution, clearing, custody, cost base and tax services to streamline the delivery of frictionless crypto investment in more than 30 tokens. By acquiring Apex, Bakkt will manage the company’s nearly 6 million crypto-enabled accounts, 30 corporate clients and $12.5 billion worth of crypto traders.
Bakkt is betting more on B2B technology solutions
In February 2023, Bakkt decided to shut down its consumer-oriented crypto app to focus more on B2B technology solutions. The Bakkt app, which was created to give users the ability to use their digital assets in various ways, was discontinued in March 2023. At the time, company representatives spoke about the discontinuation of the app and expressed their commitment to supporting the relationship their partners and customers have with their customers. They also revealed the company’s new focus on its core solutions that fit the product market and have the potential for rapid scaling.
The app was originally launched in March 2021 and collected various digital assets such as cryptocurrencies, gift cards and loyalty points. Users of the Bakkt app can still access their crypto and cash holdings via a new online platform called Bakkt Access. The platform can help users check their crypto balance and get transaction reports for tax purposes.
