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The still unreleased institutional trading platform Bakkt has been valued at $740 million after raising more than $182 million in funding last year, anonymous sources told The Block.
Last year, the exchange raised $182.5 million, bringing its total valuation up to $740 million which suggests ICE may have sold up to 25% of shares to external investors.
Sources have stated that investors have raised questions regarding their risk-return ratio given that the firm still hasn’t been given the official go-ahead after a five-month delay.
Read more: ICE CEO Jeff Sprecher reveals Bakkt to launch in late 2019
“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,” one source said. “A lot of things will need to line up for investors to receive returns that they would typically expect for a Series A.”
One source states that Bakkt can potentially raise its valuation to $1 billion.
Recently, Bakkt’s parent company, Intercontinental Exchange, announced it had added several cryptocurrencies to their data feed, a service aimed at facilitating price discovery and includes historic data on around 60 different tokens and 19 fiat currencies.
Read more: Bakkt parent company ICE adds tens of new cryptos to their data feed