Crypto Exchange Bakkt Nears Merger With Victory Park SPAC

Bakkt, the cryptocurrency platform majority owned by Intercontinental Exchange Inc., is in advanced talks to go public through a merger with blank-check firm VPC Impact Acquisition Holdings, according to people with knowledge of the matter.

The transaction is set to value the combined entity at more than $2 billion, and an announcement may come as soon as next week, said the people.

Representatives for Bakkt, ICE and VPC declined to comment.

VPC’s common shares rose 51% at 10:22 a.m. Friday in New York while its warrants jumped 290%.

Last year, Bakkt raised $300 million in capital from ICE and other investors, and acquired Bridge2 Solutions, a provider to loyalty programs. The company in 2019 launched a fully-regulated Bitcoin futures and option market.

Bakkt is led by interim Chief Executive Officer David Clifton, ICE’s vice president of M&A and integration. Outgoing U.S. Senator Kelly Loeffler was its founding CEO. Her successor, Mike Blandina, left for JPMorgan Chase & Co. last April.

VPC, a special purpose acquisition company affiliated with Victory Park Capital, raised about $200 million in a September initial public offering. The vehicle, led by Chairman and CEO John Martin, has said its value-creation strategy is to “identify, partner with and help grow a business in the fintech sector.”

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