Bakkt – owned by Intercontinental Exchange (ICE) has netted a $740 million valuation after raising more than $182 million in a Series A funding round in 2018, according to The Block, the crypto news outlet. The company sold over ¼ of its shares to investors to hit the current valuation.
This bullish valuation pre-launch surfaces as the U.S’ regulatory system related to digital currency products remains indeterminate across the board.
Currently, the company is considering to roll out physically-backed Bitcoin (BTC) futures before 2019 ends, awaiting regulatory approval.
Earlier this month, the company started working with Starbucks and Microsoft such that cryptocurrency payments would be introduced in several retail stores. The company seeks to run a perfect game plan in order to meet expectations.
“From a cash-flow perspective, Bakkt will not be earning much based on their proposed contract fees, so they really need a lot of volume. A lot of things will need to line up for investors to receive returns that they would typically expect for a Series A.”
Remember, Starbucks has not yet started accepting cryptocurrencies including Bitcoin, Ethereum, Ripple and others.
The U.S. Commodity Futures Trading Commission (CFTC) wants to resolve and straighten the bends in Bakkt’s existing operations which have seen its first appearance to be pushed back many times.
However, Commissioner Dan Berkovitz thinks that there is a great will between lawmakers to guarantee Bakkt’s physically-delivered Bitcoin futures goes to market.
Now, investors will remain on standby to see whether the company can match its share-price calculations before giving it unicorn status.
Meanwhile, in mid-January this year, the company announced its first acquisition and continues seeking for the possible ways of expanding and growing beyond the U.S market.