“We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”
Swan Bitcoin has tapped Bakkt to launch Bitcoin trading in 49 U.S. states with a comprehensive service that includes fiat onboarding, trading, and custody.
Bakkt, founded in 2018 and owned by Intercontinental Exchange (ICE), is one of the biggest digital asset industry names in the United States and abroad. The firm, however, has encountered significant financial challenges, including a cash shortage and difficulties in maintaining operations. The company has been working to address these issues by seeking to raise up to $150 million through the sale of securities.
This move is aimed at alleviating its ongoing cash flow problems and ensuring the continuation of its operations. Bakkt’s struggles are illustrated by its eight consecutive quarters of net losses since it became a publicly listed entity in October 2021, with significant losses reported in the first three quarters of 2023 alone. Despite its efforts to stabilize, including developing strategic partnerships with major corporations and focusing on institutional investors, Bakkt’s shares have seen a significant decline in 2024.
Furthermore, Bakkt made a strategic decision to end support for 25 out of the 36 crypto tokens previously listed on its recently acquired trading platform, Apex Crypto. This decision reflects a shift in its strategy towards focusing on a smaller number of more popular tokens, possibly influenced by recent regulations and changes in the crypto industry. The delisting of popular tokens such as Uniswap (UNI) and Aave (AAVE), among others, indicates Bakkt’s attempt to streamline its offerings in line with its strategic focus on the business-to-business (B2B) market for crypto services.
These developments suggest that Bakkt is navigating through a period of transition and restructuring, aiming to strengthen its financial position and refine its business model to better serve its target.
Bakkt and Swan Bitcoin eye international markets
Gavin Michael, CEO of Bakkt, said: “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”
Swan Bitcoin offers a range of options for cryptocurrency enthusiasts. From instant and recurring Bitcoin purchases to specialized services for high-net-worth individuals and businesses through Swan Private, Swan aims to simplify the Bitcoin investment process. The company also provides a tax-advantaged solution for Bitcoin savings in retirement accounts with Swan IRA and ensures secure custody of Bitcoin with Swan Vault.
