- Bakkt Holdings (BKKT) saw its stock rise nearly 19% to $11.00 after naming a new co-CEO and entering the stablecoin business, despite a small float of 5.85 million shares and 18% short interest amplifying market volatility.
- The company faced a nearly 32% stock drop after disclosing delays in its financial reporting and the loss of key clients, including Bank of America (16% of 2023 loyalty revenue, 17% for nine months of 2024) and Webull Pay LLC (74% of crypto revenue for both periods).
- With critical agreements ending in April and June 2025, Bakkt’s pivot to stablecoins aims to offset significant revenue declines, though execution remains challenging amid operational strains and a competitive crypto landscape.
Bakkt Holdings (BKKT), a crypto custody and trading firm, finds itself at a pivotal moment as its stock price swings wildly, reflecting both peril and promise in the ever-shifting cryptocurrency landscape. On Thursday, shares surged nearly 19% to $11.00 in early trading, buoyed by the appointment of a new co-CEO and a strategic pivot into the stablecoin business—a move that signals ambition amid a turbulent period. With a modest float of just 5.85 million shares and roughly 18% of that float tied up in short interest, BKKT’s stock is primed for volatility, making every corporate decision a high-stakes play for investors watching closely. This uptick offers a glimmer of hope after a brutal Monday, when the stock cratered nearly 32% in after-hours trading, driven by a cascade of unsettling news that shook confidence in the company’s near-term stability.
The Monday plunge stemmed from a double blow of operational setbacks laid bare in an SEC filing. Bakkt admitted it needs extra time to wrap up its consolidated financial statements, pushing its Form 10-K filing into the 15-day grace period allowed under Rule 12b-25. This delay in the audit process isn’t just a paperwork hiccup—it’s a red flag for a firm straddling the complex worlds of crypto trading and loyalty services, where transparency and precision are non-negotiable. Adding fuel to the fire, Bakkt disclosed the loss of two cornerstone clients. Bank of America (BAC), which drove 16% of loyalty services revenue in 2023 and 17% for the nine months ended September 30, 2024, will exit its agreement on April 22, 2025, leaving Bakkt on the hook to maintain services for a 12-month transition period. Even more bruising is Webull Pay LLC’s departure, set for June 14, 2025, stripping away 74% of Bakkt’s crypto services revenue for both 2023 and the same 2024 period. Losing Webull, a linchpin in its crypto operations, exposes just how much Bakkt leaned on a single partner to prop up that segment.
Yet, amid these losses, Bakkt isn’t standing still. The new co-CEO appointment and the push into stablecoins – a type of cryptocurrency pegged to stable assets like the U.S. dollar – suggest a calculated effort to pivot and diversify. Stablecoins are gaining traction in institutional and retail circles for their lower volatility, and Bakkt’s move could tap into a growing market segment, potentially offsetting some of the revenue hits from Bank of America and Webull. The company’s small float and high short interest only amplify the stakes, as any positive momentum could trigger a squeeze on short sellers, driving prices higher. Still, the road ahead is fraught with risk. The 12-month transition for Bank of America ties up resources, while the 74% revenue gap from Webull looms large in a crypto market notorious for its unpredictability. Bakkt’s ability to execute this stablecoin strategy – and fast – will determine whether this 19% rally is a fleeting bounce or the start of a genuine turnaround.
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