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TEXXR

Chronicles

The story behind the story

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Sources: Intercontinental Exchange subsidiary Bakkt is being valued at around $740M following its $182.5M Series A

Bakkt, ICE's yet-to-launch crypto exchange, is being valued at around $740 million following a recent Series A round of funding, sources close to the project tell The Block.

The Block Isabel Woodford

Context & Ripple Effects

Bakkt's ~$740M valuation lands two months after the ICE subsidiary raised $182.5M to build its cryptocurrency exchange, with sources reporting that regulatory hurdles have delayed its planned bitcoin futures. The market is pricing a product that has not launched yet — effectively underwriting ICE's institutional-grade custody-and-delivery model ahead of any regulatory green light.

The trajectory that follows validates the number: Bakkt went on to raise a $300M Series B with Microsoft's M12 among the investors, then agreed to go public via a SPAC merger at a $2.1B valuation — roughly triple this Series A mark in under two years.

First-order effects

  • Investors are assigning a ~$740M price to a pre-launch exchange, betting on ICE's brand and regulatory pathway rather than current revenue — while CFTC approval of the bitcoin futures remains the gating item.

Second-order effects

  • The fresh war chest pressures incumbent bitcoin futures venues and institutional custodians to match an exchange-backed competitor whose delivery model is built for physical settlement.
  • The oversubscribed interest implied by the valuation sets up the next raise: within a year Bakkt returns for a larger $300M Series B, adding M12 as a marquee backer.

Third-order effects

  • If the pattern holds, legacy exchange operators become the consolidation vehicles for regulated crypto infrastructure — taking pre-revenue ventures through successive private rounds to public exits, as Bakkt's $2.1B SPAC listing shows.
  • Private-market marks for unlaunched crypto assets get stress-tested by eventual liquidity events, making the gap between the $740M Series A valuation and the $2.1B listing price a template for how crypto infrastructure is priced.

The trend: Legacy exchange incumbents are incubating regulated crypto infrastructure through escalating private rounds toward public listings, with regulatory approval timing setting the pace of each valuation step.