In a new sign of institutional optimism in the future of Bitcoin and cryptocurrency, the crypto platform Bakkt is now valued at $740 million following a successful Series A funding round, reports The Block.
Bakkt, which is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, raised $182.5 million last year, and may have sold as much as a quarter of its shares to investors to reach the new valuation.
The company plans to launch physically-backed Bitcoin futures later this year, pending regulatory approval. It also has partnered with Starbucks and Microsoft to bring crypto payments to retail stores. A source close to the project says Bakkt needs to execute a flawless game plan 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.”
Bitcoin’s quest to remain above $4,000 continues. Right now, BTC is up 0.16% at $3,977. Ethereum is up 1.14% at $136, and XRP is up 0.3% at $0.3099.
Overall, technical analysts are cautiously optimistic on Bitcoin in the short term, but less rosy on Ethereum and XRP.
Bitcoinist – Bitcoin breakthrough means $5,000 now in the cards
Bitcoinist – ETH loses the daily uptrend
BitcoinerX – XRP/USD bears take the upper hand