Bakkt Holdings, Inc. has announced its plans to do away with its current umbrella partnership-C corporation structure through a strategic reorganization. This change will involve the establishment of a new holding company, which will also bear the name Bakkt Holdings, Inc. This new entity will take over as the public company listed on the exchanges and implement a transition to a unified single class of common stock.
Once the reorganization is finalized, current shareholders of Class A common stock in Bakkt will receive one share of common stock in the new holding company. The process will involve collapsing ownership stakes held by pre-IPO investors into the new shares, ensuring that existing shares of Class V common stock are replaced with common stock of the new entity.
The outcome of this reorganization will unify all shareholders under one class of common stock with the same economic and voting rights. This move aims to enhance clarity and streamline the capital structure of the company, thereby making it more appealing to investors.
The completion of this reorganization is anticipated to occur around November 3, 2025.
The leadership has expressed that simplifying the capital structure is a significant step towards facilitating Bakkt’s growth. This transition from the previous Up-C framework, which was initially designed to retain tax benefits for pre-IPO investors, is seen as a way to improve the company’s appeal to a broader range of institutional investors. By moving to a single-class structure, Bakkt aims to enhance transparency and scalability, aligning its governance with the long-term interests of all shareholders.