Bakkt, a cryptocurrency platform created by the parent company of the New York Stock Exchange (NYSE), is reportedly contemplating the possibility of selling the company or dividing it into smaller entities, sources informed Bloomberg.
Alternatively, the board may opt to maintain Bakkt’s current structure and forgo any sale or breakup, as explained by insiders to the publication.
The news of a potential sale comes after a series of notable acquisitions and takeover bids in the cryptocurrency industry, such as Robinhood’s purchase of the Bitstamp exchange and Coreweave’s unsolicited bid to acquire Bitcoin miner Core Scientific.
Bakkt has been facing challenges in the market, with its share price plummeting from a peak of $59.57 at the start of 2024 to approximately $19 at the time of reporting.
In February 2024, the institutional crypto firm disclosed that it was facing financial difficulties and might struggle to sustain its operations. Subsequently, Bakkt sought regulatory approval to raise $150 million in capital.
Following the approval by U.S. regulators, Bakkt was given the green light to raise funds through a $150 million securities offering to investors.
After acknowledging the cash shortage and the subsequent securities sale, Andy Main, the CEO and president of Bakkt, reassured stakeholders that the company had bolstered its financial position and was no longer at risk of closure.
Main highlighted Bakkt’s revenue of $780 million in 2023 as a sign of a positive turnaround for the company. However, a closer look at Bakkt’s financial performance paints a different picture.
Bakkt has experienced eight consecutive quarters of losses since its listing on stock exchanges in 2021, and its stock price has been steadily declining since its debut.
Despite these challenges, Bakkt’s current CEO remains upbeat and has projected revenues in the billions for 2024. Main believes that with a stronger balance sheet and new business operations, Bakkt could generate between $3.2 billion to $5 billion in revenue for the year, potentially breaking even.
Additionally, a team of cybersecurity experts known as ‘SEAL 911’ has been established to combat real-time cryptocurrency hacks, as reported in a magazine article.