The Intercontinental Exchange (ICE)’s Bakkt might have acquired Digital Asset Custody Company (DACC) for a total of $11 million reports The Block. This was supposedly revealed upon investigating ICE’s financial reports for the second quarter of 2019.
Bakkt first revealed its acquisition of DACC on Monday, April 29, 2019. More specifically, it was the company’s COO, Adam White, who at the time shared the news, adding the reason to do so was merely because,
“DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients,” not to forget, “the team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms.”
However, the firm failed to and continues to keep the costs as hidden as possible. That said, page 8 of the report listed all of its acquisitions as being $352 million. As per ICE, its June 12 acquisition of Simplifie LC amounted to $338 million minus the latter’s cash assets of $16 million, which equals $322 million.
Then, on page 12, the acquisition of companies, RCG and DACC were listed. The Block argues that Bakkt paid $19 million for RCG based on the company’s first quarter purchases (with no other purchases made in that quarter). This leaves with a balance of $11 million, which is assumed to be the price paid for DACC.
Besides the hints collected in the financial reports, ICE’s CEO, Jeff Sprecher’s comments on the purchase was considered yet another hint.
In particular, Sprecher was quoted saying during the first quarter’s released reports that the crypto winter allowed the firm to make a rather inexpensive and valuable investment. Here’s what was said:
“[We] acquired a company earlier this week that wouldn’t have been available to us had this market been really hot because valuations were really hot.”