Shares of Bakkt Holdings fell following reports that the company was exploring strategic options, including a possible sale or split of its operations.
On June 7, Bloomberg, citing people familiar with the matter, reported that the company had begun working with a financial advisor to assess these options. However, no decision has been made yet and Bakkt may remain independent from its parent company.
Yahoo Finance reports this facts, the news briefly boosted Bakkt’s stock price to over $24, but the stock value soon fell to under $18 – equivalent to an 8% drop, at the time of writing. Bakkt shares are down more than 68% this year.
Financial problems?
Earlier this year, Bakkt announced that the company has “ongoing concerns” about its ability to continue operating as its “cash and restricted cash” are unavailable. [in]sufficient to fund our operations for the twelve months following the date of filing with the U.S. Securities and Exchange Commission (SEC).
The company at the time asked to sell up to $150 million in securities over the next three years to raise capital in one or more offerings. It is striking that the company also does this implemented a reverse stock split in April to increase the stock price to meet NYSE requirements.
Meanwhile, the platform reported significant losses in the first quarter report for the year, its total revenue for the period was $854.6 million, while it had a net loss of $21.3 million.
Despite these challenges, the company’s crypto business remains robust. The first quarter report showed that crypto-compatible accounts increased 9% year-over-year to 6.3 million. Additionally, the total value of assets under custody rose to $1.2 billion, driven by higher market prices for digital assets.
Additionally, the crypto custodian revealed that it was partnering with Crossover Markets for the upcoming launch of BakktX. Andy Main, Bakkt’s president and CEO, said:
“BakktX, an institutional cryptocurrency trading platform, which will mark an important milestone in expanding our customer base and tapping into new market opportunities.”