According to a report from Axios, discussions are taking place just two years after Bakkt purchased Apex’s cryptocurrency operations for up to USD 200 million in 2022. The earlier deal was seen as a response to increased regulatory scrutiny during the Biden administration.
Launched in August 2018 by ICE, Bakkt was introduced with the intention of integrating digital assets into mainstream financial services. The company received backing from companies such as Microsoft, Starbucks, and Boston Consulting Group, initially focusing on Bitcoin futures trading through a regulated platform.
At its peak, Bakkt was viewed as a bridge between traditional finance and digital assets, supported by regulatory approvals, including a New York BitLicence and a trust charter.
Bakkt attempted to expand its services with the acquisition of loyalty provider Bridge2 Solutions for USD 300 million, leading to the launch of a consumer-facing app in 2021. The app failed to gain significant traction and was discontinued in March 2023 as the company shifted to a business-to-business-to-consumer (B2B2C) model.
Regulatory developments have impacted the firm’s operations. In response to regulatory actions, including enforcement measures by the US Securities and Exchange Commission (SEC) in 2023, Bakkt delisted 25 tokens, narrowing its focus to major cryptocurrencies such as Bitcoin and Ethereum. Financially, the company reported a net loss of USD 45 million in the first quarter of 2023.
Representatives from Bakkt have explored multiple strategies to stabilise the company, including shifting from consumer wallets to institutional custody and loyalty integrations. The Apex acquisition was expected to support profitability by adding 5.8 million crypto-enabled accounts and clients such as Webull and Public.com. However, ongoing market and regulatory challenges have hindered progress.
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