The Intercontinental Exchange (ICE) is writing off $1.1 billion on its holdings of cryptocurrency platform Bakkt (BKKT), according to information it filed with the SEC late Friday afternoon.

Atalanta-based Bakkt, which offers cryptocurrencies and other digital assets to institutional investors, reported $150 million to $160 million in intangible assets, plus goodwill losses of $1.3 to $1.4. suffer a loss.

Cryptocurrencies are considered intangible assets under Generally Accepted Accounting Principles (GAAP).

Bakkt was founded by Intercontinental Exchange in 2018. The first use cases for its technology platform were Bitcoin, other cryptocurrencies and Bitcoin futures contracts.

In January 2021, Bakkt announced plans to go public through a merger with Special Purpose Acquisition Company (SPAC) VPC Impact Acquisition Holdings. At the time, the company was valued at $2.1 billion.

Gavin Michael, CEO of Bakkt, attends Bakkt's listing by his company on the New York Stock Exchange (NYSE) in New York City, USA on October 18, 2021.  REUTERS/Brendan McDermid

Gavin Michael, CEO of Bakkt, attends the listing of his company Bakkt on the New York Stock Exchange (NYSE) in New York City, USA on October 18, 2021. REUTERS/Brendan McDermid

ICE held a 68% economic interest in Bakkt upon its listing on the New York Stock Exchange on October 15, 2021.

Shortly thereafter, Bakkt announced a partnership with Mastercard to issue cryptocurrency debit and credit cards.

Since then, the value of cryptocurrencies has plummeted. Bitcoin, for example, fell 66% from $61,548 to $20,636 per coin, but trading volume fell 18%, according to cryptocurrency indexer Nomics.

During the same period, ICE’s share price fell 30% from $138.8 to $95.40, while Bakkt’s share price fell more than 76% from $42.52 to $2.17.

In August, Bakkt CEO Gavin Michael confirmed to Yahoo Finance that the company is considering cryptocurrencies “at a slightly conservative pace.”

Bakkt shares rose one point in after-hours trading on Friday. ICE’s stock price has fallen by a similar amount over the same period.

David Hollerith is a senior reporter at Yahoo Finance covering cryptocurrencies and stock markets. Follow him on Twitter. @DsHollers

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