Intercontinental Exchange is selling its 1.4% stake in Coinbase to reduce the company’s debt. Intercontinental Exchange, the operator of the New York Stock Exchange and owner of the Bakkt digital asset platform, sold its 1.4% stake in Coinbase, the newly listed cryptocurrency company on Nasdaq.
Scott Hill, chief financial officer of ICE, said the company sold its Coinbase stake for $ 1.2 billion. The manager noted that the sale brought net revenue of approximately $ 900 million after taxes.
Aimed to reduce debt
Hill said the revenue was used to reduce ICE’s debt at the end of the first quarter. He stated that the company’s proforma leverage ratio, or total debt ratio, would be close to 3.6 times compared to 4.2 times when ICE bought mortgage-focused software company Ellie Mae in September 2020.
ICE’s decision to sell Coinbase shares came as the company recorded record revenue of $ 1.8 billion in the first quarter of 2021, up 4% year-over-year. “First quarter earnings, operating income, adjusted net income and adjusted earnings per share were the best in our company’s history,” said CFO. It was stated that while the total transaction revenues of ICE decreased slightly compared to last year, the total recurring revenue amount increased by 9%.