Bakkt Shares Plummet 35% as Key Partnerships End, Annual Report Delayed
Bakkt Holdings (BKKT), a cryptocurrency exchange and custody provider, suffered a sharp decline in its stock price on Monday after revealing that both Bank of America (BAC) and crypto trading platform Webull Pay will not be renewing their commercial agreements.
As of writing, BKKT shares have fallen 35% in after-hours trading, dropping to $12.83. This marks a significant setback for the stock, which reached an all-time high of $1,063 in October 2021 following its public debut via a merger with VPC Impact Acquisition Holdings.
Bank of America contributed approximately 16% of Bakkt’s loyalty services revenue in 2023, while Webull accounted for a staggering 74% of its crypto services revenue. The contracts are set to expire on April 22 and June 14, respectively, raising concerns about Bakkt’s future revenue streams.
In addition to the loss of these key partnerships, Bakkt has also filed for an extension with the U.S. Securities and Exchange Commission (SEC) to delay the submission of its 2024 annual report.
