The platform reported a $1.54 billion impairment in the third quarter after its majority stakeholder, Intercontinental Exchange (ICE), wrote down its investment from $1.5 billion in June to about $400 million in September, is above the $1.4 billion expected.
Bakkt’s revenue for the third quarter was $12.9 million, up 41% from the year previous, but missing the $14.1 million average analyst estimate compiled by FactSet.
"We are pleased with the momentum we are building with net revenue up 41% year-over-year and digital asset conversion volumes up 73% year-over-year," CEO Gavin Michael said.
The report shows $60 million in operating expenses, excluding the impairment charges, twice the nearly $30 million reported in the same period a year prior.
Spun out of Intercontinental Exchange in 2018, Bakkt provides back-end infrastructure for a variety of financial services companies that offer bitcoin and loyalty reward points services. This report marks the end of the first fiscal year since the company went public in 2021 via a SPAC on the New York Stock Exchange.
Last week it was revealed Bakkt is set to acquire Apex Crypto from Apex Fintech Solutions for up to $200 million. The acquisition is being viewed as an effort to bolster its cryptocurrency product.
Correction: This story has been updated to clarify the ICE write down of its investment.
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