Bakkt established by the parent company of NYSE is exploring potential strategic options, including a sale or separation.
In light of the increasing number of acquisition activities related to cryptocurrencies, Bakkt Holdings Inc., the cryptocurrency marketplace that the parent company of the New York Stock Exchange initially established, appears to be considering either a sale or a potential separation.
According to some close individuals who wished to remain anonymous, Bakkt is currently working with a financial advisor to evaluate various alternatives.
These discussions are still in the preliminary stages, and Bakkt may decide to continue operating as an independent entity. The Intercontinental Exchange Inc. and a number of other major corporations, including Starbucks Corporation and Microsoft Corporation, among others, took the initiative to establish Bakkt in 2018.
Bakkt Shares Surge 15% Amid Sale Evaluation
Bakkt shares have experienced a strong downward trend in recent trading, falling 15% to $18.10, despite the fact that they increased by 148% over the previous month.
Despite this, the company has not been performing well over the past year, as evidenced by the stock’s decline of nearly 65 percent. Bakkt faced the risk of delisting from the New York Stock Exchange (NYSE) at the start of this year due to its inability to maintain a minimum average stock price of $1 for a thirty-day period.
Despite the fact that the corporation reported a loss of $21 million for the first quarter, it generated $855 million in revenue during that same period.
The recent announcement of Bakkk’s new cooperation with Crossover Markets to establish a crypto electronic communication network, also known as an ECN, aligns with the ongoing financial turmoil.
Leadership Transition and Initiatives
Despite these challenges, Bakkt recently experienced a management shift. Andy Main will become the company’s new president and chief executive officer on March 26, 2024.
While Gavin Michael will continue to serve as a consultant until March 2025, Main, who was once the CEO of Ogilvy and a significant contributor to Deloitte Digital’s formation, will take over as CEO of Deloitte Digital.
Bakkt has established several procedures to prevent the firm from delisting from the New York Stock Exchange (NYSE), while simultaneously focusing on enhancing the value of the company’s shareholders and meeting all regulatory requirements.
Given the previously mentioned variables, the company will likely focus on developing its market position, diversifying its services, and expanding into foreign markets.
In addition, the company accomplished a recent capital raise of fifty million dollars, which it aims to put into improving both its operations and its financial standing. Ensuring the company’s continuous existence and maintaining the trust of its customers is crucial.