SPAC Deep Dive, subSPAC

subSPAC

SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Thematic (Sector/Industry)

<ul>
<li>Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC transaction.</li>
<li>This move marks the company as the first pure-play operator in the industry to pursue such an avenue, a distinct endeavor in a field dotted with complexity and uncertainty.</li>
<li>Within the past few years, we've seen several crypto SPAC deals, such as cryptocurrency miner Core Scientific and digital rewards and crypto platform Bakkt Holdings, successfully step into the public arena.</li>
</ul>


Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC transaction.
This move marks the company as the first pure-play operator in the industry to pursue such an avenue, a distinct endeavor in a field dotted with complexity and uncertainty.
Within the past few years, we've seen several crypto SPAC deals, such as cryptocurrency miner Core Scientific and digital rewards and crypto platform Bakkt Holdings, successfully step into the public arena.


Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul>
<li>1Q23 revenue grew 4% Y/Y in a tough market. Expense control improved with opex, excluding a non-recurring restructuring charge, down 11% Y/Y.</li>
<li>These results do not include Apex Crypto, but the 2Q23 report and beyond will include it.</li>
<li>The acquisition of Apex Crypto closed on April 1 and significantly changes Bakkt’s trajectory. With the combined custody solutions from Bakkt and trading capabilities from Apex, the company will be positioned to become the crypto infrastructure provider of choice.</li>
</ul>


1Q23 revenue grew 4% Y/Y in a tough market. Expense control improved with opex, excluding a non-recurring restructuring charge, down 11% Y/Y.
These results do not include Apex Crypto, but the 2Q23 report and beyond will include it.
The acquisition of Apex Crypto closed on April 1 and significantly changes Bakkt’s trajectory. With the combined custody solutions from Bakkt and trading capabilities from Apex, the company will be positioned to become the crypto infrastructure provider of choice.


Bakkt Holdings Inc. - 1Q23 Revenue Grew 4% Y/Y

<ul><li>Following the bankruptcy of FTX and Alameda Research, it is important to understand how security in crypto custody and trading works.</li><li>In crypto security, particularly by custodians, multiple levels of security should be implemented, including physical cold storage, stock exchange level processes, multiple signature wallets, and two-factor and video authorization.</li><li>Trust is a key component of custody and trading.</li></ul>

Following the bankruptcy of FTX and Alameda Research, it is important to understand how security in crypto custody and trading works.In crypto security, particularly by custodians, multiple levels of security should be implemented, including physical cold storage, stock exchange level processes, multiple signature wallets, and two-factor and video authorization.Trust is a key component of custody and trading.

Tech Talk: Crypto Custody : What Is It? How Is It Secure? Who Can Do It?

<ul><li>4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.</li><li>Opex, excluding goodwill and intangible assts impairments, was $73.2 million.</li><li>While 2022 was a difficult year for crypto, President and CEO Gavin Michael highlighted the company “delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network, and announced our acquisition of Apex Crypto.”</li></ul>

4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.Opex, excluding goodwill and intangible assts impairments, was $73.2 million.While 2022 was a difficult year for crypto, President and CEO Gavin Michael highlighted the company “delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network, and announced our acquisition of Apex Crypto.”

14% Y/Y Revenue Growth in 4Q22 in a Tough Market; Guiding 15-30% Revenue Growth in 2023

<ul><li>Bakkt is enhancing its focus onto scalable B2B2C products and sunsetting its consumer app.</li><li>Bakkt will continue its core focus of providing businesses with crypto and loyalty experiences for their customers through SaaS and API solutions on a secure and compliant platform.</li><li>President &amp; CEO Gavin Michael commented that as the company continues to “gain traction with our B2B2C strategy, we are laser focused on providing our partners and clients with seamless solutions that best serve their needs.</li></ul>

Bakkt is enhancing its focus onto scalable B2B2C products and sunsetting its consumer app.Bakkt will continue its core focus of providing businesses with crypto and loyalty experiences for their customers through SaaS and API solutions on a secure and compliant platform.President &amp; CEO Gavin Michael commented that as the company continues to “gain traction with our B2B2C strategy, we are laser focused on providing our partners and clients with seamless solutions that best serve their needs.

Enhancing Focus on B2B2C; Sunsetting Consumer App

United States

Bakkt Holdings, Inc. operates as a software company. The Company develops digital asset marketplace that enables consumers to buy, sell, store, and spend digital assets. Bakkt Holdings serves customers worldwide.

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Bakkt (BKKT US)

Crypto Frontier

Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC...

subSPAC

Bakkt Holdings Inc. - 1Q23 Revenue Grew 4% Y/Y

1Q23 revenue grew 4% Y/Y in a tough market. Expense control improved with opex, excluding a non-recurring restructuring charge, down 11% Y/Y.

Water Tower Research

Tech Talk: Crypto Custody : What Is It? How Is It Secure? Who Can Do It?

Following the bankruptcy of FTX and Alameda Research, it is important to understand how security in crypto custody and trading works.

Water Tower Research

14% Y/Y Revenue Growth in 4Q22 in a Tough Market; Guiding 15-30% Revenue Growth in 2023

4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.

Water Tower Research

Enhancing Focus on B2B2C; Sunsetting Consumer App

Bakkt will continue its core focus of providing businesses with crypto and loyalty experiences for their customers through SaaS and API solutions...

Water Tower Research

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