The need to reduce the company’s debts has propelled Intercontinental Exchange the operator of the New York Stock Exchange and owner of Bakkt digital asset platform to sell its 1.4% stake in coinbase which is equivalent to $1.2B.
The sale took place in the newly Nasdaq-listed cryptocurrency. The financial results for the first quarter of the year as reported on Thursday by ICE chief financial officer, Scott Hill revealed that the sale yielded roughly $900 million net after taxes.
Hill further stated that the revenue from the sale was used to reduce the company’s debt after the first three months of the year. The company’s total indebted rate would have been near 3.6x as against 4.2x if not for the acquisition of mortgage-focused software company Ellie Mae 7 months ago.
The incoming CEO of ICE asserted that prior to the company’s coinbase sale, they were already beating their expectations with their speedy offset of debts. However, he emphasized that the revenue helped the company to gain “some additional flexibility”.
The company’s will to sell coinbase shares comes in the course of its posting record revenues for the Q1 of the year summing up to $1.8 billion and up 4% compared to last year. According to the CEO,
First quarter revenues, operating income, adjusted net income and adjusted earnings per share were all the best in the history of our company.
He further added that though there was a slight decline in the company’s total transaction revenue the previous year, there is also an increase by 9% in the recurring revenues.
The Q2 2021 will mark the public put up of Bakkt, another of ICE’s digital asset trading platform on NYSE in union with VPC Impact Acquisition Holdings.
Since April 14, coinbase, US highest crypto exchange has been going public until Thursday when its stock ended the trade at $294, with a gradual drop after its listing. The shares initially started up at $381 as its pre listing reference price was only $250.
There was a wave of sales following the listing of coin shares as coinbase executives made $5 billion sales in COIN stocks including CEO Brian Armstrong, who sold off 750,000 shares netting what is equivalent to $292 million.
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