Intercontinental Exchange Inc., or ICE, will publicize its cryptocurrency business by merging it with a specialty procurement company, an agreement that will further the goal of launching a consumer app for trading and paying with digital assets.
The company, called Bakkt, is expected to have a valuation of $ 2.1 billion after the merger with VPC Impact Acquisition Holdings is completed, the companies said on Monday.
The deal brings together two of the most popular plays in today’s markets: crypto and SPACs. the largest digital currency, rose above $ 40,000 for the first time last week, and SPACs had their biggest year ever in 2020, setting a record $ 83 billion in new listings, according to data provider SPACInsider. SPACs, also called ‘blank-check’ companies, are vehicles offered in public to raise cash for mergers and acquisitions.
As part of the agreement, Bakkt will raise an additional $ 532 million from VPC funds and receive a concomitant capital increase. This will support the development and marketing of the Bakkt app, which is considered as a tool to let people control their various digital assets. This could include bitcoin, loyalty points and rewards programs, such as those offered by Starbucks Corp. and airlines, and virtual assets of video games.
More than 400,000 people have pre-registered for the app, which is expected to have a wide public implementation in March, Bakkt says. According to Bakkt, the app will gather more than 30 million users within five years, according to a presentation on the agreement issued on Monday. That ambitious target will put Bakkt in the same league as other instant financial programs like Robinhood, Venmo or Square Inc. see Cash App.