VIH stock has been rising on speculations of a short squeeze. This is a common phenomenon in the SPAC space as investors bet against short-sellers.
VIH is a blank-check company that plans to take public Bakkt Holdings (NYSE: BKKT). ICE, the owner of Intercontinental Exchange, launched Bakkt in 2018. It provides a marketplace for cryptocurrencies.
VPC Impact Acquisition Holdings (VIH) is a SPAC
A SPAC is a special-purpose acquisition company that raises capital through an initial public offering and then uses that money to merge with a private company. Once the merger is completed, the new company becomes a publicly traded corporation. SPACs are an increasingly popular alternative to traditional IPOs, but they have been hit by recent market turmoil.
VPC Impact Acquisition Holdings (VIH) is a SPAC that plans to merge with Bakkt. The merger is expected to be valued at around $2 billion once it is complete and should be a boon to both companies.
Bakkt is a digital currency custodian and financial instrument provider that was founded by Intercontinental Exchange (ICE) and a group of investors in 2018. Their main product is the smartphone app, which offers users a single place to buy and sell cryptocurrency and other financial instruments.
VIH Stock is a SPAC that will merge with Bakkt in a transaction that should be valued at around $2 billion once the merger is complete and should be a boon for both companies. The merger is expected to be completed in the second quarter of 2021 and will involve a number of key regulatory approvals.
Business Combination
The business combination is subject to approval from the boards of both companies and other customary closing conditions. A registration statement containing a proxy statement/prospectus of VIH Stock and a definitive agreement and plan of merger (together, the “Business Combination Agreement”) will be filed with the SEC.
According to the Business Combination Agreement, upon the closing of the business combination, each former Bakkt equity owner will receive non-economic voting shares of the combined company in exchange for their equity interest in Bakkt. Additionally, former equity holders will share in a tax receivable arrangement with the combined company, which is based on a percentage of aggregate cash and non-cash assets at the time of the business combination.
The lawsuit claims that Bakkt made false statements regarding its accounting practices and balance sheet, which negatively impacted the company’s performance. It cites several issues, including its failure to properly account for warrants it sold to investors.
VPC Impact Acquisition Holdings (VIH) is a blank-check company
VPC Impact Acquisition Holdings (VIH) is a blank-check company that intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in Chicago, Illinois.
VIH Stock was formed in order to pursue a combination with a global high-growth business in the Fintech industry with operations predominantly outside of the United States. Its sponsor is an affiliate of Victory Park Capital, a global investment firm with a long track record of executing debt and equity financing transactions with some of the largest global Fintech companies.
The Company operates as a digital asset platform that offers a secure, trusted, and frictionless experience for businesses and consumers to manage payments and buy, sell, spend, and redeem digital financial assets. The Company’s digital asset offerings include the Bakkt Platform, a comprehensive offering of liquidity and trading services, and Bakkt’s Marketplace, an ecosystem of third-party merchants that offer products and services to businesses using the Company’s platform.
Digital Asset Marketplace
Bakkt Holdings, LLC (“Bakkt”) is the digital asset marketplace founded in 2018 by Intercontinental Exchange and a group of marquee investors and strategic partners. The Company was formed as a result of the previously announced business combination between VIH Stock – a special purpose acquisition company – and Bakkt Holdings, LLC (formerly known as “VPC Impact Acquisition Holdings”), which was completed on October 15, 2021.
Upon completion of the Business Combination, Bakkt changed its name to “Bakkt Holdings, Inc.” and it’s Class A common stock and public warrants will begin trading on the New York Stock Exchange under the ticker symbols “BKKT” and “BKKT WS,” respectively, starting Monday, October 18, 2021. ICE maintains an approximately 68% economic interest and a minority voting interest in the combined Company, which is subject to approval by the SEC.
PJ Solomon is serving as financial advisor and Shearman & Sterling is serving as legal advisor to Bakkt. Citigroup and Jefferies are financial and capital markets advisors to VIH and co-placement agents on the PIPE. White & Case LLP is serving as legal advisor to VIH Stock.
VPC Impact Acquisition Holdings (VIH) is a financial services company
VPC Impact Acquisition Holdings (VIH) is a financial services company that offers a range of financial products and services. Its products and services include payment processing, banking, lending, credit cards, investment management, and insurance. The company provides these services to a large customer base and has experienced steady growth.
The company is a special purpose acquisition company (SPAC). That seeks to pursue business combinations with companies in the Fintech industry. Its principal asset is its capital, which it uses to acquire other businesses. Its shares are traded on the Nasdaq Stock Market.
VIH Stock recently closed the merger with Bakkt Holdings, LLC (“Bakkt”), a digital asset marketplace launched in 2018. The combination was completed on October 15, 2021. And will result in a public company trading on the New York Stock Exchange. Under the ticker symbols “BKKT” and “BKKT WS”. The combined company is expected to begin trading on the New York Stock Exchange on Monday, October 18, 2021.
As a SPAC, VIH Stock has a unique business model. It offers investors an attractive alternative to initial public offerings through an alternative means of raising capital. The SPAC structure allows investors to participate in a high-growth business at a lower cost than through an IPO.
Option for investors
A SPAC may be an ideal option for investors looking to participate in a fast-growing company. But it’s important to remember that these types of deals often involve significant risks. It is important to research a company’s history and financial statements prior to investing in its stock.
Moreover, SPACs are subject to the same regulatory scrutiny as other companies and must comply with strict SEC rules. They must also disclose certain information in their proxy statement and prospectus, which are filed with the SEC.
VPC Impact is backed by Victory Park Capital, a global investment firm with a long track record of executing debt. And equity financing transactions with some of the largest global Fintech companies. The firm is headquartered in Chicago with additional resources in New York, Los Angeles, and Austin.
Read more: Three Things You Should Know About TwoH Stock
VIH Stock is a blank check company, also known as a special purpose acquisition company (SPAC). It is formed for the purposes of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business. Combination with one or more businesses or entities.
VPC Impact Acquisition Holdings (VIH) is a technology company
VPC Impact Acquisition Holdings (VIH) is a technology company that offers financial services and technology products. It has been in business since 2020 and is headquartered in Chicago, Illinois. Its main product is a smartphone app that allows users to buy, sell, and spend digital assets such as cryptocurrencies. It also has a platform that lets businesses and individuals manage their payments.
VIH’s stock price has been rising for several months now, with it trading. At a high of $103.10 per share on October 15, 2021. This makes the stock a hot investment opportunity, but investors should be aware that it is risky.
The stock is currently at an overbought level, which means that it has reached a point. Where it can’t go much higher without entering into a consolidation phase. Its relative strength index (RSI) is measuring in at about 75% which is a sell signal for technical traders.
Fundamental Outlook
In addition, the stock is in a bullish trend, which indicates that it has a strong fundamental outlook. And the company’s shares are likely to continue rising. Its stock price is also trading at a relatively low premium, which is another positive sign for the company’s shares.
VIH’s shareholders should read the proxy statement/prospectus that has been filed with the SEC in connection with the Business Combination. As well as other documents that have been or will be filed with the SEC. Because they contain important information about the Business Combination. These documents may be accessed free of charge at the SEC’s website circulars. Or through the link included in this press release.
VIH Stock recently completed its Business Combination with Bakkt Holdings, LLC, a digital asset marketplace founded in 2018. The combined company has commenced trading as Bakkt Holdings on the New York Stock Exchange. Under the ticker symbols “BKKT” and “BKKT WS” beginning October 18, 2021. ICE is maintaining an economic interest and minority voting interest in the combined company. Which will be reclassified as equity method investments in ICE’s financial statements.
