Breaking: Bakkt Faces Major Setback as Key Partners Exit
Crypto exchange and custody firm Bakkt Holdings (BKKT) experienced a devastating blow to its market value, with shares plummeting 35% in after-hours trading to $12.83 following the announcement that two major customers would not renew their commercial agreements.
Key Partnership Losses Impact Revenue Streams
The company revealed that both Bank of America (BAC) and crypto trading platform Webull Pay will terminate their existing partnerships. These departures represent significant revenue losses for Bakkt:
- Bank of America: Contributed 16% of Bakkt’s loyalty service revenue in 2023
- Webull: Accounted for 74% of Bakkt’s crypto service revenue in 2023
Timeline of Partnership Terminations
The commercial agreements are set to expire on the following dates:
- Bank of America agreement: April 22, 2025
- Webull contract: June 14, 2025
Historical Context and Market Impact
The current share price represents a dramatic fall from Bakkt’s peak performance. The company reached its all-time high in October 2021, trading at $1,063 following its public debut through a merger with VPC Impact Acquisition Holdings. The latest development has raised concerns about Bakkt’s future growth prospects and ability to maintain its market position in the competitive crypto services sector.
Regulatory Compliance and Financial Reporting
Adding to investor concerns, Bakkt has requested an extension for filing its 2024 annual report with the SEC, further contributing to market uncertainty about the company’s financial health and operational stability.
Market Analysis and Future Outlook
The simultaneous loss of two major revenue streams poses significant challenges for Bakkt’s business model and growth strategy. The company will need to rapidly secure new partnerships and diversify its revenue sources to maintain market confidence and stabilize its share price.
Source: CoinDesk