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Bakkt Completes Business Combination with VPC Impact Acquisition Holdings

UTC by Ibukun Ogundare · 3 min read
Bakkt Completes Business Combination with VPC Impact Acquisition Holdings
Photo: Shutterstock

The financial advisor to Bakkt Holdings in this deal was the investment banking company PJ Solomon.

Atlanta-based digital asset trading firm Bakkt Holdings LLC has completed a business combination with special purpose acquisition company VPC Impact Acquisition Holdings (NASDAQ: VIH). Bakkt had passed a prior announcement about the business combination before announcing the deal on the 15th of October. Now, the joint company has begun operating as Bakkt Holding.

Bakkt and VPC Impact Acquisition Holdings

According to the announcement, Bakkt’s shares of Class A common stock and warrants will begin trading as the combined company begins operations. The stock and warrants will start to trade on the New York Stock Exchange (NYSE). Trading for both the stock and the warrants will start today, the 18th of October. The Class A common stock will trade under the ticker “BKKT” while warrants trade with the ticker symbol “BKKT WS.”

Gavin Michael, the chief executive officer of Bakkt, spoke on the new development. The Bakkt CEO expressed his excitement with the partnership with VPC. Michael said that the business combination will provide the digital asset trading firm with capital to innovate further.

“We are thrilled to enter this next chapter, and we look forward to propelling our growth initiatives and advancing our mission of connecting the digital economy. We expect our platform will continue to redefine the digital asset marketplace in which it operates, and we are excited for the opportunity to accelerate our innovation, growth and scale as a public company,” said he.

The financial advisor to Bakkt Holdings regarding the deal with VPC Impact Acquisition Holdings was the investment banking company PJ Solomon. Also, law firm Wilson Sonsini Goodrich & Rosati served as the legal advisor. On the other hand, Investment banking company Citigroup (NYSE: C) and Jefferies acted as the financial and capital markets advisors to VPC. In addition, White & Case LLP serves as the acquisition company’s legal advisor.

VPC CEO Praises Bakkt’s Business and Management Team

The CEO of VPC Impact Acquisition Holdings, John Martin, also commented on the business combination. He said that the business and management team at Bakkt are “truly one of a kind.”

“We believe that Bakkt has a compelling value proposition and, combined with its best-in-class management team, Bakkt is well-positioned to create significant long-term shareholder value.,” explained Martin.

The announcement further revealed that Bakkt saw gross proceeds of about $448 million from the business combination. The digital asset marketplace will back investments in the company’s platform capabilities and market efforts. Also, a part of the proceeds will go into supporting current and future partnerships, which will fuel the company’s growth.

At the time of writing, VIH  stock is up 3.53% to $9.69 at after-hours trading. Except for the after-hours gains, the special purpose acquisition company has been recording losses since the year started. Since January, VIH has lost more than 7% and another 5.55% in the last three months. Also, the company has declined 7.14% over the past month and has shed 2.19% in the last five days.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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