Charges of up to $1.4 billion are to be reported by Bakkt

According to SEC on October 28, Bakkt will report an impairment loss in the third quarter that ranges from $1.3 billion to $1.4 billion
Bakkt will announce its third-quarter results on 3rd November
ICE, the majority shareholder, claims that between June and September, it will have significantly reduced its investment in Bakkt

According to a Securities and Exchange Commission (SEC) filing from October 28, the digital asset management platform Bakkt will incur an impairment of $1.3 billion to $1.4 billion in the third quarter.

Intercontinental Exchange (ICE), the majority shareholder, stated in the filing that it intends to reduce its investment in Bakkt from $1.5 billion at the end of June to approximately $400 million at the end of September.

ICE stated that the ensuing charge will not affect adjusted earnings. According to the filing, Bakkt also intends to record a charge of $150 million to $160 million for certain indefinite-lived intangible assets.

The company reported a net loss of $27.6 million

In October 2021, the special purpose acquisition company VPC Impact Acquisition Holdings and Bakkt, which was founded in 2018, merged. On October 18, 2021, it went public on the New York Stock Exchange (NYSE). The NYSE is held by ICE.

In the months since Bakkt went public, there have been significant changes in the C-suite. Former Chief Operating Officer Adam White joined Blackstone in August as a senior adviser after announcing his departure in December 2021.

Then, in May, the Chief Financial Officer of the company, Drew LaBenne, announced his resignation; on May 23, Karen Alexander assumed the position on an interim basis, and she officially took over as CFO on August 9.

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Bakkt’s chief financial officer is departing

On November 3, Bakkt will release its third-quarter results. Today, its shares dropped from a high of around $50 to around $2. Bakkt entered the market for the first time in 2018 with plans to launch a number of digital asset-related initiatives, including bitcoin derivatives.

Since then, the company has launched its own retail application that supports crypto purchases and lets users exchange reward points for cash. Third-party businesses and merchants can use Bakkt’s technology to provide crypto-related services to their customers.

Intercontinental Exchange and its first chief executive officer, Kelly Loeffler, who was the wife of ICE CEO Jeff Sprecher, provided the initial capital for Bakkt. When Loeffler was chosen to fill one of Georgia’s seats in the US Senate in 2019, she left the company.

dam White, Bakkt’s president, and an early employee left the company at the end of 2021.

LaLanne, who joined Bakkt in 2021, was previously Amalgamated Finance Corp.’s chief financial officer from 2015 to 2021. According to his biography on Bakkt’s website, he previously held the position of chief financial officer of JPMorgan’s banking business from 2013 to 2015.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing