Bakkt to Acquire Distributed Technologies Research for Enhanced Stablecoin Payment Solutions

Summary:
Bakkt Holdings, Inc. is set to acquire Distributed Technologies Research Ltd. (DTR) as part of its strategy to enhance stablecoin settlement and programmable payment systems. The deal involves an all-equity transaction valued with Bakkt issuing Class A shares, and it aims to streamline operations and open new revenue streams.

Key Takeaways

Bakkt will acquire DTR through an all-equity transaction, issuing Class A shares equating to roughly 31.5% of the total Bakkt shares.
The acquisition is anticipated to speed up the launch of stablecoin settlements, while decreasing dependence on external providers.
An independent special committee of Bakkt's board approved the deal, which requires regulatory and shareholder consent.
Bakkt will change its name to "Bakkt, Inc." on January 22, continuing to trade under the ticker BKKT, as it evolves into a global financial infrastructure platform.
The company recently acquired a significant stake in Japan's MarushoHotta, rebranding it as "Bitcoin.jp" to focus on cryptocurrency operations.

Hong Kong Stablecoin

Bakkt's Acquisition of Distributed Technologies Research

Bakkt Holdings, Inc. has announced its agreement to acquire Distributed Technologies Research Ltd. (DTR) as part of its strategic effort to develop capabilities in stablecoin settlements and programmable payments.

This acquisition will involve Bakkt issuing shares of its Class A common stock, which represents 31.5% of the “Bakkt Share Number,” as outlined in a previous cooperation agreement with DTR.

Based on the current share metrics, this means Bakkt is set to issue about 9.1 million Class A shares to DTR shareholders, which includes DTR's founder and Bakkt CEO, Akshay Naheta. This figure is subject to adjustments pending the closing of the transaction.

Accelerating Stablecoin Settlement

According to Bakkt, this acquisition is expected to facilitate faster market entry for its stablecoin settlement services by bringing essential technology in-house.

The company believes that owning DTR’s technology will minimize reliance on third-party providers and create new revenue opportunities in payment and banking sectors.

This deal follows months of collaborative integration work between the two companies and aims to reinforce Bakkt’s broader goal of becoming a leading platform for programmable money and innovative financial infrastructure.

Governance and Approval Process

The acquisition was reviewed and approved by an independent special committee of Bakkt's board, which includes board members Colleen Brown and Mike Alfred. The completion of this deal is still contingent upon standard closing conditions, including regulatory approvals and consent from Bakkt shareholders.

Significantly, the Intercontinental Exchange, Inc., which holds about 31% of Bakkt’s Class A common stock, has agreed to endorse the transaction, providing substantial support from shareholders.

Bakkt's Name Change and Future Plans

In a separate announcement, Bakkt revealed plans to rebrand itself as “Bakkt, Inc.” starting January 22. The company will maintain its listing on the New York Stock Exchange under the ticker symbol BKKT. This name change signals Bakkt's evolution towards a more integrated global financial infrastructure platform.

In August, Bakkt also acquired around 30% of the Tokyo-listed textile company MarushoHotta for $115 million, becoming the largest shareholder. The company plans to rebrand MarushoHotta as “Bitcoin.jp,” shifting its focus toward cryptocurrency treasury operations.

This acquisition transforms the 120-year-old Japanese manufacturer into a Bitcoin-centric investment entity, led by the new CEO Phillip Lord, who is also the President of Bakkt International.