SPAC Surges 64% On Report Of Merger Talks With ICE-Owned Crypto Exchange Bakkt

Shares of VPC Impact Acquisition Holdings VIH, a blank-check company, soared over 64% in the after-hours session on Thursday after news emerged that it was negotiating a merger with Intercontinental Exchange Inc ICE-owned cryptocurrency exchange Bakkt. 

What Happened: The merger between the two companies will value the emergent entity at more than $2 billion. An announcement is expected as early as next week, people familiar with the matter told Bloomberg.

In September, Bakkt launched its first regulated Bitcoin futures exchange. It went on to launch a fully regulated options contract for Bitcoin futures in October. 

Why It Matters: Bakkt raised $300 million last year from ICE as well as other investors and acquired Bridge2Solutions, a company that provides loyalty solutions, noted Bloomberg.

The cryptocurrency exchange is led by interim CEO David Clifton, who was formerly ICE’s vice president of mergers and acquisitions and integration. 

Outgoing Senator Kelly Loeffler (R-Ga) was the exchange’s first-ever CEO. 

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VPC is linked with Victory Park Capital and raised $200 million in its initial public offering in September. The company is led by CEO Josh Martin.

Price Action: VPC shares traded 64.36% at $17.11 in the after-hours session on Thursday after closing 2.36% higher at $10.41 in the regular session. On the same day, Intercontinental Exchange shares traded mostly unchanged at $115.81.