Digital Asset Custody Company Bakkt Announces Significant Loss In Q3
According to an SEC filing on October 28, digital asset management company Bakkt would incur a $1.3 billion-$1.4 billion impairment in the third quarter.
The company’s largest stakeholder, Intercontinental Exchange (ICE), claimed in the filing that it aims to cut its investment in Bakkt from $1.5 billion at the end of June to roughly $400 million by the end of September. The resulting charge, according to ICE, will not affect adjusted earnings.
“Company will record an estimated impairment loss on goodwill of approximately $1,300-$1,400 million and on certain indefinite-lived intangible assets of approximately $150-$160 million,” the filing shows.
Bakkt, which was founded in 2018, will merge with VPC Impact Acquisition Holdings, a special-purpose acquisition firm, in October 2021. In the second quarter, the firm recorded a net loss of $27.6 million, down from a net loss of $43.3 million in the first quarter.
Bakkt stated in August that it projected quarterly net losses for the remainder of the year as it continued to invest in the business.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
CoinCu News
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Digital Asset Custody Company Bakkt Announces Significant Loss In Q3
According to an SEC filing on October 28, digital asset management company Bakkt would incur a $1.3 billion-$1.4 billion impairment in the third quarter.
The company’s largest stakeholder, Intercontinental Exchange (ICE), claimed in the filing that it aims to cut its investment in Bakkt from $1.5 billion at the end of June to roughly $400 million by the end of September. The resulting charge, according to ICE, will not affect adjusted earnings.
“Company will record an estimated impairment loss on goodwill of approximately $1,300-$1,400 million and on certain indefinite-lived intangible assets of approximately $150-$160 million,” the filing shows.
Bakkt, which was founded in 2018, will merge with VPC Impact Acquisition Holdings, a special-purpose acquisition firm, in October 2021. In the second quarter, the firm recorded a net loss of $27.6 million, down from a net loss of $43.3 million in the first quarter.
Bakkt stated in August that it projected quarterly net losses for the remainder of the year as it continued to invest in the business.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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