New York Stock Exchange-backed Bakkt considers sale — Report

Vince QuillJun 07, 2024New York Stock Exchange-backed Bakkt considers sale — ReportInsiders, who spoke to Bloomberg, say a breakup of the company, a sale, or the decision to maintain its current structure are all on the table.12247 Total views4 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBakkt, a crypto platform launched by the parent company of the New York Stock Exchange (NYSE), is reportedly considering the sale of the firm or breaking up the company into smaller entities, insiders told Bloomberg.

The board may also choose to maintain Bakkt"s current structure and forego a sale or a breakup of the company altogether, the sources explained to theoutlet.

News of the potential sale followed several high-profile acquisitions and takeover offers in the crypto space, including Robinhood"s acquisition of the Bitstamp exchange and Coreweave"s unsolicited offer to buy out Bitcoin miner Core Scientific.

Bakkt has been suffering from poor price performance in the market. The crypto company’s share price experienced a sharp decline from a high of $59.57 at the beginning of 2024 to around $19 at the time of writing.

Related:Bakkt shifts focus to custody services, adds support for DOGE, SHIB, other coins.

In February 2024, the institutional crypto firm revealed that it was running low on cash and might not be able to keep its business open. Bakkt then applied to gain regulatory approval to raise $150 million in capital to maintain its operations.

Shortly after the application, U.S. regulators approved Bakkt"s plan to raise capital through a $150 million securities sale to investors.

A month following the admitted shortfall in cash and the ensuing securities sale, Andy Main, Bakkt"s CEO and president, released a statement claiming that the firm had strengthened its balance sheet and was no longer in danger of closing.

Main pointed to Bakkt"s 2023 revenue of $780 million as evidence that things have turned around at the company. However, a look at Bakkt"s price performance and financials tells a different story.A chart showing Bakkt"s steady price decline. Source: TradingView

Bakkt experienced eight consecutive quarters of losses since its 2021 listing on stock exchanges, and the price of the stock has been in steady decline since its debut.

Despite this, Bakkt"s current CEO remains optimistic and projected revenues for in the billions of dollars for 2024.

According to Main, a strengthened balance sheet and new operations could bring in anywhere from $3.2 billion to $5 billion in revenue for 2024.

These figures would allow Bakkt to break even in 2024, the CEO noted.

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