Scan to Download ios&Android APP

Partnership with MasterCard sends Bakkt shares 51% higher

14:27, 25 October 2021

Share this article

Have a confidential tip for our reporters?

A customer holds a smartphone with a Bakkt Holdings logo in one hand a bitcoin token in the other
Bakkt Holding’s partnership with MasterCard to facilitate crypto transactions has sent its shares up by 51.5% – Photo: Shutterstock

MasterCard and Bakkt Holdings announced a partnership on Monday that will allow banks and merchants to expand their cryptocurrency services, sending Bakkt shares climbing 38% higher on Monday morning after an initial rise of 51.5% in pre-market trading.

The Alpharetta, Georgia-based digital-asset platform, which went public on 15 October via a merger with special-purpose acquisition company (SPAC) VPC Impact Acquisition Holdings (VIH), saw its shares jump 51.5% in pre-market trading to open at $13.86 following the announcement.

Shortly after the opening bell, Bakkt shares traded up an additional 27.7% from the opening price, hitting a new all-time high of $17.72 per share on over 65 million trading volume. Bakkt shares trade on the New York Stock Exchange under the ticker BKKT.

Increasing demand for crypto

“As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy increasing demand for crypto, payment and rewards flexibility,” said Bakkt’s executive vice president of loyalty rewards and payments, Nancy Gordon, in a release announcing the partnership.

The agreement will allow MasterCard to offer crypto-trading abilities through a Bakkt custodial wallet, as well as to convert loyalty reward points into crypto.

Additionally, MasterCard will offer Bakkt-branded debit and credit cards.

Share-price increases

MasterCard shares moved up by a more modest 1.54% in mid-morning trading to reach a high of $364.30.

What is your sentiment on MA?

319.16
Bullish
or
Bearish
Vote to see Traders sentiment!

Bakkt shares had been trading below its $10 per share initial public offering (IPO) price until Monday, hitting a low of $8 per share on 21 October. However, the share price climbed after VIH shareholders voted with a 85.1% majority to approve the merger, with roughly 40% opting for a refund instead of Bakkt shares, the company reported.

Bakkt had previously announced a partnership with Google integrating its crypto debit card with Google Pay for consumer purchases, as well as with Choice Hotels to convert loyalty reward points into bitcoin.

Read more: Cryptocurrency exchange Bakkt to go public next month

Read more: Bakkt expands crypto access with Google partnership
 

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?


Join the 400.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account

2. Make your first deposit

3. You’re all set. Start trading