NYSE owner sells Coinbase stake for $1.2 billion, with a profit of $900 million

Intercontinental Exchange, the owner of the New York Stock Exchange and crypto platform Bakkt, has sold its 1.4% stake in Coinbase for $1.2 billion.

The trade resulted in a net profit of about $900 million, Intercontinental Exchange's CFO said in an earnings call on Thursday. The company sold the stake this month after Coinbase went public on April 14.

The Coinbase stake sale gave Intercontinental Exchange "some additional flexibility" to reduce its debt, said Hill. The company's leverage is now about 3.6 times of EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to 4.2 times six months ago.

Hill also talked about Bakkt on the earnings call, saying that the crypto firm's merger with Victory Park should be completed "toward the end of this quarter."

Bakkt announced the merger with Victory Park, the special purpose acquisition company (SPAC), earlier this year for its listing on the New York Stock Exchange.

As for Coinbase, its shares are trading 22% down since its listing on Nasdaq. The stock was listed at a price of $381 and closed at  $298 on Thursday.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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