Editor | Lu XiaomingThe Block。
Text | Suixin
Editor | Lu Xiaoming
Published by Odaily Sunday Daily
Bakkt's major shareholder Intercontinental Exchange (ICE) reported for the first quarter that Bakkt's M&A transactions advanced as much as $19 million
Bakkt partially acquired Rosenthal Collins Group in Q1, but ICE does not appear to have made any acquisitions
This suggests that Bakkt may have paid $19 million for its first acquisition, which sources said was a "very high" amount
Further insight into Bakkt's acquisition price may shed light on the timing of Bakkt's next funding round
Analysis of the first quarter financial report of ICE, the parent company of the encrypted exchange Bakkt, shows that Bakkt mayAcquisition of Rosenthal Collins Group (RCG)Probably cost $19 million. Bakkt and ICE declined to confirm the news, so we don't have a definitive answer, but here is some interesting information.
The $19 million in funding is inICE's 2019 Consolidated Statement of Cash Flowsclassified as "investment activities". This shows all cash flows invested in the company's business and all cash paid out by subsidiaries (of which Bakkt is one).
There is no explanation for the $19 million in funding, but analysis can attribute it to Bakkt. Neither ICE's other subsidiaries nor ICE itself completed any public acquisitions during the last quarter. And in ICE's most recent earnings call, the only acquisition mentioned was RCG.
ICE also explained its acquisition in its statement. For example, in the first quarter of 2018, it explained the numbers listed in the statement in that part - the acquisition of Bond Point for $400 million. But the 2019 numbers are unaccounted for, perhaps because it was a much smaller acquisition, or because it was Bakkt's.
image description
excerpt fromICE Latest Documentationpage 9 of . The two columns on the left show investments in the first quarter of 2019 and the first quarter of 2018, respectively. Since Bakkt is controlled by ICE, its investments are on paper.
RCG is a Chicago-based futures trader, but sold its client accounts and front end to a company called Marex Spectron last December. According to Bakktblog postBakkt acquired the backend in February and brought in several members of the RCG team, according to the report.
But the $19 million it cost to acquire RCG's back-end systems and team is quite high, sources said. However, it was also pointed out that given that Bakkt has raised more than $182.5 million, “they can afford crazy expenses” and that such acquisitions are crucial to their business model.
blogblogCryptocurrency exchange Bakkt has acquired Digital Asset Custody Company (DACC), aiming to continue developing a secure digital asset storage solution, Zhong said.
Notably, ICE CEO Jeff SprecherIn an earnings call last week, he said, the crypto bear market justified the acquisition price of DACC.
"(We) bought a company earlier this week, and if the market was really hot, we wouldn't have bought the company because the valuations are high," he said. The quarter is complete, and prices will likely show up in ICE's next filing.
existexistAwaiting regulatory approval, revenues remain stagnant, financing negotiations may restart earlier than expected.
Odaily has reported that in January, Bakkt CEO Kelly LoefflerAnnounced on Medium, Bakkt completed the first round of financing of US$182.5 million. The investment institutions and partners participating in the first round of investment include Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft Venture Capital sector, M12, Pantera Capital, PayU, Naspers' FinTech division, and Protocol Ventures.
I am Odaily reporter Wu Suixin (WeChat ID wsuixin12), please note your name, unit, title and reason when adding friends.
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