Bakkt is going public at a $2.1 billion valuation

Bakkt, a crypto trading platform is going public at a roughly $2.1 billion enterprise value by merging with a blank-check company called VPC Impact Acquisition Holdings. The deal was guided by Shearman & Sterling LLP and White & Case LLP.

Since its founding nearly three years ago, Bakkt has been at the forefront of enabling institutions and consumers to buy, sell, store, and spend digital assets. Bakkt has received backing from the venture capital arms of Microsoft and Naspers and from blockchain-focused fund Pantera Capital, among others.

Bakkt Holdings LLC said on Monday once the merger with VPC Impact Acquisition Holdings is complete, the combined company will be renamed Bakkt Holdings Inc. The share will trade on the New York Stock Exchange.

About blank-check company VPC:

VPC Impact Acquisition Holdings is a special purpose acquisition company or SPAC. Also called blank-check companies. SPACs are entities that raise money through an initial public offering for a future business combination. The vehicles have become increasingly popular in recent years.

“We are pleased to have found a great match in Bakkt,” VPC Impact CEO John Martin said in a statement. “The company has a strong position in one of the most well-funded and fastest-growing areas of technological expansion.”

Crypto to main street

As the first major crypto trading platform to go public, industry experts believe the float will double as validation for a technology that’s still seen by many as lawless and experimental.

Coinbase is also eyeing for IPO launch. 2021 will set off a wave of IPO activity around the blockchain companies looking to access funding through public markets. This could provide wider meaningful exposure to the larger audience about the crypto industry.