There is presently an air of uncertainty around Bakkt, the cryptocurrency platform launched by the parent company of the New York Stock Exchange (NYSE). This relates to a recent Bloomberg report, which cited inside sources as saying Bakkt, at the moment, is torn between deciding whether to opt for an outright sale, a breakup into smaller entities, or just maintain its current structure.
Bakkt Contemplation: Financial Woes or Bold Ambitions?
This news follows several other similar reports of acquisitions and total takeovers within the crypto space. Although acquisitions like Robinhood’s purchase of Bitstamp exchange follow a clean and easy decision that both parties involved arrived at, the decision for Bakkt seems less clear-cut.
Bakkt has faced performance challenges in recent months. Its share price fell from a high of nearly $60 at the beginning of 2024 to a current price of around $19. Additionally, the company admitted to cash flow concerns around February this year, raising doubts about its long-term viability.
At the time, the crypto firm secured regulatory approval for a $150 million capital raise, a move CEO Andy Main thought was enough to keep the firm in business. However, Bakkt’s overall financial health remains a cause for concern. The company has seen eight straight quarterly losses since its 2021 IPO. That is not to mention the continuous decline in its stock price.
Despite these challenges, Main remains fairly certain that the company’s fortune may have turned around for good. His optimism borders on Bakkt’s 2023 revenue of $780 million, which hints at good times ahead. In view of this, Bakkt’s projected revenue for 2024 sits somewhere between $3.2 billion and $5 billion, according to the CEO. These figures, if achieved, could bring Bakkt to a break-even point this year, Main noted.
It remains to be seen whether Bakkt can achieve this ambitious financial turnaround, find a suitable buyer, or restructure itself into a more viable entity. With the crypto market experiencing volatility and consolidation, the coming months will be crucial for Bakkt’s future.
