More and more cryptocurrency companies would think about the benefits of going public in the future.
There is a new dawn for cryptocurrencies. Bakkt digital asset market is setting all the details to go public on the New York Stock Exchange in 2021.This event would prepare the path for more crypto- providers to adhere their services to the New York Stock Exchange soon.
The Intercontinental Exchange announced on January 11 that its Bakkt cryptocurrency market would soon enter the New York Public Stock Exchange. This will happen through a merger with a special purpose acquisition company, VPC Impact Acquisition Holdings.
The shell company will merge with Bakkt so that it can appear on the stock market without having to make an initial public offering. Initial reports show that Bakkt’s value surpasses the $ 2 billion, that is the estimated figure once the merge happens, and the exchange intends to raise another $ 532 million to fund the ongoing development of its app, a rewards wallet app targeting retail users, which is set to launch in March.
The company indicated that the merger will be under completion in the second quarter of 2021. The newly created Bakkt Holdings Inc. will then appear on the list on the New York Stock Exchange. There was a lot of talk about the investor in the US Securities and Exchange Commission (SEC). The commission released a document that highlights the potential value that the crypto market could reach at the end of 2025 and comparing those highlights with the actual market capitalization that surpassed $ 1 trillion in January 2021.
The Traditional Financial Sector Is Starting to Recognize Cryptocurrencies
The timing of the merger and Bakkt’s decision to go public is not surprising, since crypto markets are currently booming.
A move like this will place Bakkt in a very lucrative position. The push to go public shows that the traditional financial sector is beginning to recognize that companies that work with cryptocurrencies and Blockchain technology can mature and prosper as well as grow their value. Some large institutional investors like MicroStrategy paved their way through the crypto industry thanks to their multi-million dollar purchases of Bitcoin (BTC) in recent months; now, investing in the right companies could potentially be more beneficial.
Megadeals are the Future for the Growth of Cryptocurrencies
Coinbase and Bakktare are using the IPO window as an advantage to allow their investors an exit event and use the resultant advertising and publicity as a strategy that could enforce and consolidate their brands. The Bakkt and Coinbase types made a step forward in the race to gain public funding and advertising while taking advantage of their features and offerings. These deals will consolidate both more than they are. Although Bitcoin keeps making history, space is still in its early days, it is still young, and the key to growing in the next 20 years will come from public investment.
By: Jenson Nuñez