$VIH VPC Impact SPAC merger with Bakkt – a fintech provider – analysis

$VIH is a SPAC that is looking to merger with fintech provider Bakkt. The company will get $574M in cash at a valuation of $2.6B post merger.

Bakkt is majority owned by $ICE (Intercontinental Exchange), which is adding $50M to the PIPE.

Bakkt manages digital assets – digital currency, loyalty points, gift cards, in game assets and crypto currency for consumers.

Bakkt is a platform for institutional investors as well to buy, sell, and store digital assets on a global network.

Bakkt also offers warehouse storage for the safekeeping of Bitcoin.

In 2019, the company announced that it was working with Starbucks to enable customers to reload their Starbucks Card—enabling people to buy coffee with Bitcoin.

Bakkt was founded in 2018, and started in crypto currency trading, allowing consumers to manage their digital assets.

ICE operates exchanges, clearinghouses, and listing venues & provides
services to support the trading, lending, investment and risk management.

VIH

Other stockholders include $MSFT $SBUX $ICE $PAYU and Boston Consulting Group.

Analysis

$VIH Bakkt This is a very cursory analysis, but I am not at all excited about this yet or I am missing something for the short to medium term.

$VIH They claim to have consumer accounts, but still dont have a large presence.

$VIH They claim to focus on 300% growth in 2022, but obliviously we will know more only after 2-3 Q of execution. The valuation is not cheap, the comparable companies are doing well $SQ and $COIN, so this is an easy pass for me, for now.