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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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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.