- Bakkt Holdings Inc. (BKKT) stock is surging $2.86, or 22.19%, to $15.75 in midday trading, driven by an Axios report suggesting Apex Fintech may acquire Bakkt, which bought Apex’s crypto operations in 2022 for up to $200 million, now expected to cost less than half due to unmet targets.
- The potential deal reflects crypto industry shifts, with Apex exiting crypto amid Biden-era scrutiny and now eyeing a return under a Trump administration friendlier to digital assets, boosting firms like Robinhood, whose stock hit a record high in 2024.
- Bakkt, with a $175 million market cap, has struggled since acquiring Apex Crypto—key to its turnaround—while Apex, once valued at $4.7 billion in a 2021 SPAC, is barred from crypto trading independently until a set period ends, per the original deal.
Bakkt Holdings Inc. (BKKT) is seeing its stock soar, up $2.86 or 22.19% to $15.75, and the buzz is largely thanks to a report from Axios indicating that Apex Fintech is eyeing a potential acquisition of the Intercontinental Exchange spinoff. This comes after Bakkt scooped up Apex’s crypto operations two years ago, a deal that’s now circling back in an unexpected twist. Axios points out that this move reflects the wild policy swings between the Biden and Trump administrations, which have thrown the crypto industry into a state of flux. Back in 2022, Apex, a company known for embedding stock trading into apps, offloaded its crypto business to Bakkt amid intense regulatory pressure on digital assets. That business, dubbed Apex Crypto, was meant to be Bakkt’s lifeline – a cornerstone for its turnaround efforts – but it’s faltered under Bakkt’s watch, contributing to struggles that led to a going concern warning filed early last year.
The crypto landscape has shifted dramatically since then. The new administration’s friendlier stance on crypto, evidenced by scaled-back SEC lawsuits against exchanges, has turned the sector into a goldmine for some. Robinhood (HOOD), for instance, hit an all-time stock high last month, with crypto overtaking other segments as its top revenue driver by the end of 2024. For Bakkt, though, the story’s been less rosy. Its market cap sits at $176-plus million today, a far cry from the promise of its Apex Crypto acquisition, which was initially pegged at up to $200 million. Axios reports that due to missed financial targets, Bakkt’s payout for that deal is now expected to be less than half that amount. Rumors of a sale or breakup have dogged Bakkt for at least a year, and an acquisition by Apex might be its best shot at stability.
Digging deeper, the original 2022 deal came with strings attached: Apex Fintech agreed to steer clear of crypto trading for a set period unless it partnered with Apex Crypto, a clause that’s now in play as Apex considers re-entering the space. Axios underscores how this potential buyback highlights the industry’s whiplash—regulatory crackdowns under Biden pushed Apex out, while a more permissive Trump-era approach is pulling it back in. Apex, which once chased a $4.7 billion valuation in a 2021 SPAC deal, clearly sees an opportunity to reclaim its crypto footing. Bakkt’s 22% intraday price spike reflects investor optimism about this lifeline, but the Axios report cautions that the seriousness of these talks remains uncertain. Still, with Bakkt’s struggles and Apex’s ambitions, this could mark a pivotal shift for both players in a sector where policy winds dictate the winners.
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