Bakkt’s fortunes have taken a significant hit after losing two major customers, Bank of America and Webull Pay, which accounted for approximately 90% of the company’s revenue streams. Shares plummeted by 35% in after-hours trading to $12.83.
Bakkt Shares Plummet After Loss of Two Major Customers
Bakkt, a leading cryptocurrency platform, launched its shares on the New York Stock Exchange (NYSE) in 2019.
The initial public offering (IPO) aimed to provide institutional investors with a secure and regulated way to trade cryptocurrencies.
Bakkt shares are listed under the ticker symbol BKTTU.
With Bakkt's listing, institutional investors can now access cryptocurrency markets through traditional financial channels.
Bakkt Holdings, a leading crypto exchange and custody firm, witnessed a significant decline in its shares after two major customers, Bank of America and Webull Pay, announced they would not renew their commercial agreements with the company. As a result, BKKT shares have dropped by 35% in after-hours trading to $12.83.
The Impact on Bakkt’s Revenue Streams
Webull Pay is a mobile payment service offered by Webull, a popular online brokerage platform.
It allows users to send and receive payments directly from their brokerage account.
Webull uses ACH (Automated Clearing House) network for electronic fund transfers, making transactions fast and secure.
Users can link their bank accounts or debit cards to their Webull account, enabling seamless payment processing.
With Webull Pay, users can pay bills, transfer funds, and make purchases online or in-store.
Bank of America is a multinational banking and financial services corporation headquartered in Charlotte, North Carolina.
Founded in 1904 as the Bank of Italy, it was later renamed to Bank of America National Trust and Savings Association in 1928.
With over $2 trillion in assets, Bank of America is one of the largest banks in the United States.
The bank offers a range of services including consumer and commercial banking, wealth management, and credit cards.
Bank of America accounted for approximately 16% of Bakkt‘s loyalty service revenue in 2023, while Webull represented 74% of the company’s crypto service revenue during the same period. These two agreements were ‘crucial to Bakkt’s financial stability and growth.’ With the loss of these major customers, Bakkt is facing a substantial blow to its revenue streams.
Delayed Annual Report Filing
In addition to the decline in shares, Bakkt has also delayed the filing of its 2024 annual report with the Securities and Exchange Commission (SEC). This development has raised concerns among investors and analysts about the company’s financial health and ability to meet regulatory requirements.
The stock made its all-time high in October 2021, when it was traded for $1,063 shortly after the firm became public through its merger with VPC Impact Acquisition Holdings. However, this recent news has brought Bakkt’s fortunes to a significant low.
- coindesk.com | Bakkt Shares Drop 35% After Loss of Two Major Customers
- au.finance.yahoo.com | Bakkt Shares Drop 35% After Loss of Two Major Customers
