New York Stock Exchange (NYSE) operator Intercontinental Exchange Inc ICE has sold its 1.4% stake in cryptocurrency exchange Coinbase Global Inc COIN.
What Happened: According to ICE’s Chief Financial Officer Scott Hill, proceeds from the sale generated over $1.2 billion, which amounted to $900 million after taxes.
“Assuming those proceeds have been used to reduce debt at the end of the first quarter, our pro forma leverage would have been closer to 3.6 times compared to 4.2 times when we acquired Ellie Mae just over six months ago,” said Hill in an earnings call.
Why It Matters: ICE explained that the decision to sell its Coinbase stake helped the firm stay ahead of schedule with respect to paying down its debt.
“So I think when you think about this Coinbase proceeds, that's really -- that gives us some additional flexibility as we kind of move into the rest of the year,” said ICE’s Vice President of Investor Relations Warren Gardiner.
Coinbase closed its first day of trading as a public company with an $87.5 billion valuation.
On Thursday, shares closed at $294.77 and traded in and around the same levels during Friday’s pre-market session.
What Else: ICE’s digital asset exchange Bakkt is also set to go public on the NYSE later this year through a SPAC merger with VPC Impact Acquisitions Holdings.
The combined company will be renamed Bakkt Holdings, Inc and is valued at approximately $2.1 billion.
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