Digital Asset Custody Company Bakkt Announces Significant Loss In Q3

According to an SEC filing on October 28, digital asset management company Bakkt would incur a $1.3 billion-$1.4 billion impairment in the third quarter.

The company’s largest stakeholder, Intercontinental Exchange (ICE), claimed in the filing that it aims to cut its investment in Bakkt from $1.5 billion at the end of June to roughly $400 million by the end of September. The resulting charge, according to ICE, will not affect adjusted earnings.

“Company will record an estimated impairment loss on goodwill of approximately $1,300-$1,400 million and on certain indefinite-lived intangible assets of approximately $150-$160 million,” the filing shows.

Bakkt, which was founded in 2018, will merge with VPC Impact Acquisition Holdings, a special-purpose acquisition firm, in October 2021. In the second quarter, the firm recorded a net loss of $27.6 million, down from a net loss of $43.3 million in the first quarter.

Bakkt stated in August that it projected quarterly net losses for the remainder of the year as it continued to invest in the business.

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