ICE takes $1.1 billion write off for stake in crypto platform Bakkt

The exchange expects to reduce the carrying value of its investment in Bakkt to $400 million from $1.5 billion earlier this year.

According to a Securities and Exchange Commission (SEC) filing last week, Intercontinental Exchange (ICE) is taking a $1.1 billion write off for its holdings of Atlanta-based crypto platform, Bakkt.

The crypto and digital assets provider to institutional investors will record an impairment loss on goodwill amounting to approximately $1.3-1.4 billion, in addition to certain indefinite-lived intangible assets between $150-160 million.

Originally formed in 2018 by ICE, Bakkt’s first use cases for its platform were bitcoin, other cryptocurrencies and bitcoin futures contracts.

At the beginning of this year, Bakkt revealed plans to go public following a merger with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings. At the time of the announcement, the crypto platform held an enterprise value of $2.1 billion.

When the firm was listed on the New York Stock Exchange on 15 October this year, ICE held a 68% economic interest with a minority voting interest in Bakkt.

Following Bakkt’s impairment, ICE expects to reduce the carrying value of its investment in the crypto platform to approximately $400 million as of 30 September from $1.5 billion as of 30 June this year.

The SEC’s filing stated that this non-cash charge will have no impact on ICE’s adjusted earnings for the three- and nine-month periods ended 30 September 2022.

ICE will announce its quarterly results as planned for the period ended 30 September 2022 on 3 November 2022.