Cryptocurrency platform Bakkt intends to sell or split
Bakkt, the cryptocurrency platform backed by the parent company of NYSE, is exploring potential sale or even dissolution options.
According to reports, the cryptocurrency platform Bakkt (NYSE: BKKT), backed by the parent company of the New York Stock Exchange (NYSE), is exploring potential sale or split options. It is reported that the company has hired financial advisors to consider various strategic options, including potential sales or acquisitions. However, Bakkt has neither officially confirmed nor denied this.
Important Decisions Imminent?
It is reported that Bakkt is working with financial advisors to consider various strategic options, including potential sales or acquisitions. However, no final decision has been made yet, and the company may continue to operate independently. The company ended the first quarter of 2024 with a loss of $21 million and revenue of $855 million.
In comparison, in 2023, its revenue was $780.1 million, and net losses significantly reduced by 89% to $225.8 million. It is expected that the company’s total revenue for 2024 will range between $3.29 billion and $5.11 billion.
Company Under Pressure
Bakkt was founded by the Intercontinental Exchange in 2018 with the initial goal of enabling Starbucks customers to purchase coffee with Bitcoin. The company gradually shifted towards providing cryptocurrency trading, mainly derivatives trading, and is currently focused on crypto custody services. Bakkt launched a digital wallet in 2021 but discontinued the service last year.
Although Bakkt successfully went public in November 2020, early recognition of cryptocurrencies in the broader financial services sector has declined. The company’s stock price has dropped 44% over the past year, with a year-to-date loss of 64%, although it has surged 93.5% in the past month.
Earlier this year, Bakkt stated that its future development was under pressure due to insufficient operating funds. However, the company ultimately alleviated this issue by bolstering its cash reserves.
Recently, Bakkt partnered with Crossover Markets to develop a cryptocurrency electronic communication network (ECN). Crossover will provide technical support for Bakkt’s upcoming crypto ECN platform, BakktX.
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