Shares of Bakkt Holdings have taken a hit after reports surfaced suggesting that the company is exploring various strategic options, including a potential sale or breakup of its operations.
According to sources familiar with the matter cited by Bloomberg on June 7, Bakkt has engaged a financial advisor to evaluate these possibilities. However, no final decision has been made, and it is possible that Bakkt will remain independent from its parent company.
Following the news, Bakkt’s share price briefly surged to over $24, only to drop back down to under $18, resulting in an 8% decrease at the time of reporting. Year-to-date, Bakkt’s shares have fallen more than 68%.
Earlier this year, Bakkt had expressed concerns about its financial stability, highlighting that its cash reserves may not be sufficient to sustain its operations for the next 12 months in a filing with the US Securities and Exchange Commission (SEC). In response, the company aimed to raise up to $150 million through the sale of securities over the next three years. Additionally, Bakkt underwent a reverse stock split in April to meet NYSE requirements.
Despite these struggles, Bakkt’s crypto business remains strong. The company reported an increase in crypto-enabled accounts by 9% year-on-year, totaling 6.3 million. The total value of assets under custody also rose to $1.2 billion, driven by the surging market prices of digital assets.
In a positive development, Bakkt announced its collaboration with Crossover Markets for the upcoming launch of BakktX, an institutional crypto trading platform. Bakkt’s President and CEO, Andy Main, expressed optimism about this partnership, stating that BakktX will open up new market opportunities and expand their client base potential.
The financial troubles and potential strategic shifts within Bakkt have raised concerns among investors and analysts in the investment and trading sectors.
