NYSE-Backed Crypto Platform Bakkt Considers Sale Amid Market Struggles
Crypto platform faces potential sale or restructuring
Bakkt, the cryptocurrency platform launched by the New York Stock Exchange (NYSE) parent company, is reportedly exploring significant changes, including a potential sale or breaking up into smaller entities, according to insiders speaking to Bloomberg.
However, Bakkt's board is also considering maintaining the current structure, which could mean no sale or breakup at all.
This news comes amid a flurry of high-profile acquisitions in the crypto sector, such as Robinhood's purchase of Bitstamp and Coreweave's bid for Bitcoin miner Core Scientific.
Bakkt has faced significant financial challenges recently. Its share price plummeted from a high of $59.57 at the start of 2024 to around $19 by June 7, 2024. In February, the company revealed it was running low on cash and might not sustain its operations.
To address this, Bakkt sought and received regulatory approval to raise $150 million through a securities sale. Despite this capital infusion, the company has suffered eight consecutive quarters of losses since its 2021 stock exchange listing.
Andy Main, Bakkt's CEO and President, remains optimistic. He announced that Bakkt's balance sheet had improved significantly, citing the firm's 2023 revenue of $780 million as a positive indicator. Main projects that new operations could drive revenues between $3.2 billion and $5 billion for 2024, potentially allowing the company to break even.
Despite these optimistic projections, Bakkt's ongoing poor market performance and financial struggles cast doubt on its future. The board's decision on whether to sell, restructure, or maintain the current course will be closely watched by industry observers and investors alike.
In summary, Bakkt's potential sale or restructuring could mark a significant shift in the cryptocurrency landscape. The company's future remains uncertain, but its decisions in the coming months will be critical for its survival and growth.