Cryptocurrency exchange Bakkt is going public through a billion dollar deal with blank check firm VPC Impact Acquisition Holdings (VIH). The crypto platform, which was founded by soon-to-be former Georgia Senator Kelly Loeffler, will have an enterprise value of USD 2.1b following the merger.
VPC, which is considered an SPAC (shell companies that attract funding through IPOs so that they can make another company public within a two-year time frame), had previously raised USD 200m last year in an IPO.
Platforms like Bakkt are rushing to go public as the demand for Bitcoin and similar cryptocurrencies has exploded over the last few months. Bakkt’s competitor Coinbase also applied to go public (though confidentiality) back in December. This could make Bakkt the first exchange operator of its kind to list on the U.S. stock market.