By
Steve Muchoki
April 19th, 2024
Bakkt closed a $300 million Series B fundraising round. The round was led by Microsoft’s M12, Pantera Capital. PayU and other prominent companies.
Bakkt, the cryptocurrency derivatives exchange, has undergone series B funding. This was to the tune of $300 million. Sources say that the exchange involved many partners. Intercontinental Exchanges (ICE), which is Bakkt’s parent company, Microsoft‘s M12, Pantera Capital, PayU, CMT Digital, Boston Consulting Group, and Goldfinch Partners were among those who supported Bakkt.
New Acquisition Improves Prospects, Bakkt App to Come This Summer
Bakkt also acquired Bridge2 Solutions, a customer loyalty services company. A mobile app aimed at retail clients is in the offing as well. Already, Jeffrey Sprecher indicated in an earnings call that Bakkt could be entering the way over $1 trillion in assets following the acquisition.
Sources say that CEO Mike Blandina stated:
“I’m excited at our potential to unlock nearly $1 trillion of digital assets when the Bakkt app launches this summer. With the completion of our Series B financing and the recent acquisition of Bridge2 Solutions, Bakkt is now a team of 350 employees and powers the loyalty redemption programs for seven of the top 10 financial institutions and over 4,500 loyalty and incentive programs including two of the largest U.S. airlines.”
Concerning the Bakkt mobile app, Blandina said:
“Digital assets have been around for decades, and we all have way more value there than we realize. We’re laser-focused on getting consumers to access to that value and making it as easy to spend as if it were cash,”
This puts Bakkt in the same vicinity of Square headed by Twitter CEO Jack Dorsey when it comes to mobile access to Bitcoin.
While Bakkt had been hailed by many as the harbinger of adoption, others have also considered the emergence of competitors such as CME Bitcoin futures.
This was also a welcome development as per competition in the crypto space. CME Bitcoin futures in January overtook Bakkt in a debut trading volume of about $2 million.
This is a far cry from the all-time-high of $20 million in November and a weekly-trading volume of $124 million in December.
It also raises the prospects of adoption. The mobile app will bring the power of all the data and partnerships that Bridge2 Solutions offers.
Will Bakkt Bring Us Closer to Cryptocurrency Adoption?
It also brings the big question closer to home: When will massive Bitcoin adoption occur? Many analysts within the crypto space believe that hybrid models such as Bakkt present the best use-case for adoption. Negative attitudes haven’t affected the trading volume of the exchange, however.
In the long- term we shall see a shift from traditional use-cases scenarios to regular ones where cryptocurrencies are concerned.
Bakkt has been gaining momentum in recent times. The idea of physically settled contracts once it catches on will most likely be the preferred method of adoption. This is what all bitcoin HODLers prefer: money in their control. For now, though, it is an exciting ride for those within the crypto space involved with Bakkt.