Bakkt faces NYSE delisting due to low stock price

Bakkt Holdings, Inc., a leading company in the cryptocurrency market, received a notice from the New York Stock Exchange (NYSE) on March 14, 2024, for violating the exchange’s minimum stock price regulations. Section 802.01C of the NYSE Listed Companies Manual requires that the average closing price of a company’s common stock must remain above $1.00 per share for any consecutive 30-day trading period. Bakkt’s stock failed to meet this requirement as its average share price fell below the threshold.

However, the NYSE’s notice does not trigger an immediate delisting of Bakkt’s common stock. Instead, it begins a six-month period during which Bakkt can regain compliance. You can be compliant if your stock reaches a closing price of at least $1.00 on the last trading day of any month within that period and maintains an average closing price of at least $1.00 during the 30 trading day period ending on that date.

Bakkt has expressed its intention to address these deficiencies, presenting several options, including a stock split, pending shareholder approval. A reverse stock split reduces the number of shares outstanding, ultimately increasing the stock price without affecting the company’s market capitalization.

This situation highlights the volatility and regulatory challenges facing companies in the cryptocurrency industry. Bakkt’s forward-looking statements indicate its commitment to overcoming these obstacles, but also acknowledge the company’s many challenges, including maintaining its NYSE listing in a rapidly evolving technological and regulatory environment.

Founded in 2018, Bakkt has established itself as a leader in enabling long-term participation in the cryptocurrency economy by providing institutional-grade cryptocurrency custody, trading, and on-ramp capabilities. Headquartered in Alpharetta, Georgia, Bakkt is expanding its global footprint by providing solutions for the rapidly growing digital asset market.

The broader implications of Bakkt’s current predicament reflect the continued maturation of the cryptocurrency industry, which continues to adapt to the framework and compliance requirements of traditional financial markets. Bakkt’s journey to address compliance challenges can therefore serve as a valuable case study for other companies operating in this dynamic sector.

As of the date of this press release, Bakkt’s management remains committed to ensuring the Company’s full compliance with NYSE standards and continues to explore all possible alternatives to resolve the stock price issues. The company’s efforts to address regulatory violations could have significant implications for its future operations and the broader cryptocurrency market, so investors and stakeholders are advised to monitor the situation closely.

Bakkt’s ability to meet this challenge will be closely watched by investors and regulators alike, providing insight into the resilience of cryptocurrency-focused companies in the face of regulatory pressure and market volatility.

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