Outside Source
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Author
Ruholamin Haqshanas
Author
Ruholamin Haqshanas
Shares of cryptocurrency firm Bakkt took a significant hit on March 18, plummeting more than 27% following the announcement that two major clients, Bank of America and Webull, would not be renewing their commercial agreements.
According to a regulatory filing on March 17, Bakkt disclosed that Bank of America informed the company it would not extend its commercial deal beyond its expiration on April 22.
Additionally, Webull, a popular brokerage platform, decided not to renew its agreement when it ends on June 14.
Bakkt Faces Revenue Hit as Bank of America Ends Partnership
These departures pose a significant blow to Bakkt’s revenue stream.
Bank of America accounted for 17% of the company’s loyalty services revenue in the nine months leading up to September 30, 2024.
Meanwhile, Webull contributed a staggering 74% of Bakkt’s crypto services revenue during the same period.
The news sent Bakkt’s stock price (BKKT) tumbling. On March 18, shares closed at $9.33, marking a sharp 27.28% decline.
The downward trend continued in after-hours trading, with the stock slipping another 2.25% to $9.12, according to Google Finance.
The latest drop adds to Bakkt’s prolonged downturn—its stock has now lost over 96% of its value since reaching an all-time high of $1,063 on October 29, 2021.
Adding to investor concerns, Bakkt has twice delayed its earnings conference call, rescheduling it for March 19.
The firm, founded in 2018 by Intercontinental Exchange (ICE), which owns a 55% stake and operates the New York Stock Exchange, is facing mounting scrutiny over its financial stability.
Bakkt Faces Potential Class-Action Lawsuit Over Market Turmoil
The market turbulence has drawn legal attention as well. The Law Offices of Howard G. Smith announced a potential class-action lawsuit against Bakkt, alleging violations of federal securities laws.
The lawsuit claims that the loss of key partnerships, combined with the postponed earnings call, contributed to the stock’s steep decline, harming investors.
This is not the first time Bakkt’s stock has seen dramatic fluctuations.
In November 2023, its share price surged over 162% to $29.71 after reports surfaced that Donald Trump’s media company was in advanced discussions to acquire the firm.
Before that, ICE was reportedly considering selling or restructuring Bakkt into smaller entities.
Further complicating Bakkt’s outlook, the NYSE warned the company in March that it had fallen out of compliance with listing requirements after its stock remained below $1 for 30 consecutive trading days.
In November 2023, Bakkt Holdings announced its expansion into both international and domestic markets.
The digital asset marketplace detailed its plans to extend cryptocurrency capabilities across numerous global markets, servicing both existing partnerships and new clients.
This article first appeared at News
