- October 30, 2022
- Posted by: Bastion team
- Category: World News
Intercontinental Exchange (ICE) is taking a $1.1 billion write-off for its holdings of crypto platform Bakkt (BKKT) according to an SEC filing late Friday afternoon.
Atalanta-based Bakkt, which offers crypto and other digital assets to institutional investors, is taking a $1.3 to $1.4 impairment on a loss of goodwill in addition to $150 to $160 million on its intangible assets.
Cryptocurrencies are considered intangible assets based on Generally Accepted Principles of Accounting (GAAP), meaning they must be written down to their lowest price for a period and cannot be marked up until sold.
Bakkt was originally formed by the Intercontinental Exchange back in 2018. The first use cases for its technology platform were bitcoin and other cryptocurrencies and bitcoin futures contracts.
In January 2021, Bakkt announced plans to go public through a merger with a particular purpose acquisition company (SPAC) VPC Impact Acquisition Holdings. At the time, the company held an enterprise value of $2.1 billion.
ICE held a 68% economic interest in Bakkt when it was listed on the New York Stock Exchange on October 15, 2021.
Shortly thereafter, Bakkt announced a partnership with Mastercard to issue crypto debit and credit cards.
Since then cryptocurrencies have plummeted in value. Bitcoin, for example, has sold off by 66%…