Key Takeaways:
- Bakkt is considering selling the firm or breaking it into smaller entities, though maintaining its current structure remains an option.
- The company has faced poor market performance, with its share price dropping from $59.57 at the start of 2024 to around $19 currently.
- CEO Andy Main projects 2024 revenues between $3.2 billion and $5 billion, which he believes will enable the company to break even despite eight consecutive quarters of losses.
Bakkt, a crypto platform established by the parent company of the New York Stock Exchange (NYSE), is considering selling the firm or breaking it into smaller entities, according to insiders.
However, maintaining the current structure is also an option.
After being launched with much fanfare in 2018, the Bakkt digital-asset marketplace is exploring a sale. https://t.co/9fZBMTZbV5
— Bloomberg Crypto (@crypto) June 7, 2024
This news comes amid several notable acquisitions in the crypto space, such as Robinhood’s purchase of Bitstamp and Coreweave’s offer to buy Core Scientific.
Bakkt has faced poor market performance, with its share price plummeting from $59.57 at the start of 2024 to around $19 currently.
In February 2024, Bakkt revealed it was running low on cash and sought regulatory approval to raise $150 million to continue operations, which was subsequently approved.
Crypto custodian Bakkt is considering a potential sale or break up: report https://t.co/BZn0h5ID51
— The Block (@TheBlock__) June 7, 2024
CEO Andy Main later announced that the firm had strengthened its balance sheet, citing 2023 revenue of $780 million.
Despite these claims, Bakkt has seen eight consecutive quarters of losses since its 2021 stock exchange listing, with a continuous decline in stock price.
THE END OF NYSE'S DIGITAL ASSET CUSTODY?
— BSCN (@BSCNews) June 7, 2024
– Crypto custodian and trading firm @Bakkt is exploring various strategic options, including a potential sale or break up, according to Bloomberg.
– The firm has enlisted a financial advisor to aid in the decision-making process,… https://t.co/iO5v5hIv8h pic.twitter.com/NcgER23Hvr
Nonetheless, Main remains optimistic, projecting revenues between $3.2 billion and $5 billion for 2024, which he believes will allow the company to break even.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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