Bakkt considering sale or separation amid crypto acquisitions, 7% share drop, and leadership changes to grow.
Bakkt Holdings Inc., the crypto marketplace founded by the New York Stock Exchange parent firm, is reportedly mulling a sale or dissolution amid an increase in crypto-related takeover activity.
According to several persons familiar with the situation who declined to be named, Bakkt is currently consulting with a financial counselor about various strategies.
These discussions are still in the early stages, and Bakkt may opt to maintain its autonomy.
In 2018, Bakkt was founded by the Intercontinental Exchange Inc. and other prominent corporations, including Microsoft Corp. and Starbucks Corp.
Bakkt Shares Rise 15% Amid Sale Evaluation
Although Bakkt’s shares have experienced a 148% increase over the past month, they have experienced a significant downtrend in recent trading, falling 15% to $18.10.
Concurrently, the company’s stock has declined by about 65% in the last year, indicating that the company has not been performing well.
Bakkt was at risk of being delisted from the NYSE earlier this year as a result of its inability to maintain a minimal average stock price of $1 over a 30-day period.
The company generated $855 million in revenue during the first quarter, despite incurring a $21 million loss.
Bakkk has recently announced a new partnership with Crossover Markets to develop a crypto electronic communication network (ECN), which coincides with this financial turbulence.
Leadership Transition and Initiatives
Bakkt has recently undergone a change in management, with Andy Main becoming the new President and CEO on March 26, 2024, despite these challenges.
Main, who was previously the CEO of Ogilvy and a major contributor to the development of Deloitte Digital, succeeds Gavin Michael, who will continue to serve as a consultant until March 2025.
Bakkt has implemented numerous strategies under Main’s leadership to prevent the company from being delisted from the NYSE, while simultaneously enhancing shareholders’ value and adhering to all legal obligations.
The company will likely prioritize the diversification of services, the penetration of foreign markets, and the enhancement of its market position as a result of these factors.
Additionally, the company recently secured $50 million in capital to enhance its financial status and operations.
This is essential for maintaining the company’s credibility and its continued existence.
