Coinbase stock may be down now, but it is still making money for those who invested early enough. One of them is the Intercontinental Exchange, which owns the New York Stock Exchange, and Bakkt, a crypto platform.
The company has announced that it offloaded its 1.4% stake in Coinbase for a total of $1.2 billion. This means it made a profit of $900 million from this sale. According to the company’s CFO, Scott Hill, the sale was made when Coinbase went public on the 14th of April.
Intercontinental Exchange has benefited immensely from this sale and has managed to cut down on its debt significantly. After the sale, its leverage now stands at 3.6 times its EBITDA, which is a considerable drop from its leverage of 4.2 times EBITDA just half a year ago. The sale is an indicator of the potential that cryptocurrencies hold for traditional companies that are willing to participate in this young but fast-growing space.
Aside from announcing the sale, the company’s CFO, Scott Hill, also highlighted BAKKT. He stated that BAKKT’s merger with Victory Park was almost complete and that it would be finalized towards the end of the quarter. The merger between BAKKT and Victory Park, a SPAC that will help BAKKT get listed on the NYSE, was announced earlier in the year.