New York Stock Exchange-Backed Bakkt Considers Sale — Report
Bakkt, a cryptocurrency platform launched by the parent company of the New York Stock Exchange (NYSE), is reportedly considering selling or splitting the company.
The board may also maintain Bakkt’s current structure and forgo selling or breaking up the company altogether, the people said.
News of the potential sale follows a number of high-profile acquisitions and takeover proposals in the cryptocurrency industry, including Robinhood’s acquisition of the Bitstamp exchange and an unsolicited offer involving Coreweave’s acquisition of Bitcoin miner Core Scientific.
Bakkt is suffering from poor price performance in the market. The cryptocurrency company’s stock price has plummeted from a high of $59.57 in early 2024 to around $19 at the time of this writing.
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In February 2024, the institutional cryptocurrency company stated that it may not be able to sustain its business due to a lack of cash. Bakkt then applied for regulatory approval to raise $150 million in capital to sustain its operations.
Shortly after filing, U.S. regulators approved Bakkt’s plan to raise capital through the sale of $150 million in securities to investors.
A month after the admission of cash shortfall and subsequent securities sale, Bakkt’s CEO and president Andy Main issued a statement claiming the company had strengthened its balance sheet and was no longer at risk of going out of business.
Main pointed to Bakkt’s $780 million in 2023 revenue as evidence that things have turned around for the company. However, a look at Bakkt’s price performance and financial health tells a different story.
Bakkt has suffered losses for eight consecutive quarters since its listing on the stock exchange in 2021, and its stock price has been steadily declining since its debut.
Nonetheless, Bakkt’s current CEO remains optimistic and predicts billions of dollars in revenue in 2024.
The strengthened balance sheet and new operations could generate $3.2 billion to $5 billion in revenue by 2024, according to Main.
The CEO said that these numbers will allow Bakkt to break even in 2024.
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