Bakkt’s Shares Dive as Major Crypto Clients Exit: What It Means for the Market
In a significant shift for the cryptocurrency services sector, Bank of America and Webull have both opted not to renew their agreements with Bakkt. This decision comes as Bakkt faces challenges in maintaining its revenue streams from these prominent partners.
Key Changes in Bakkt’s Partnerships
Bank of America contributed a notable 16% of Bakkt’s loyalty service revenue in 2023, but it will not extend its contract when it expires next month. Similarly, Webull, which represented a staggering 74% of Bakkt’s crypto services revenue in the same year, will also let its agreement lapse in June.
Impact on Bakkt’s Revenue
The non-renewal of these contracts raises questions about Bakkt’s future revenue streams and overall business strategy. With two major partners withdrawing, the company will need to explore new avenues to sustain its financial health.
Regulatory Developments
In light of these changes, Bakkt has requested an extension for filing its 2024 annual report with the SEC. This request indicates potential challenges in providing timely and comprehensive financial disclosures.
Background of Bakkt
Founded in 2018, Bakkt was initially owned by the Intercontinental Exchange, the parent company of NYSE. The firm went public in 2021 through a $2.1 billion SPAC deal, aiming to enhance its footprint in the digital assets market.
Conclusion
As Bakkt navigates these pivotal changes, the implications for its business model and future partnerships remain to be seen. Stakeholders will be closely monitoring the company’s next steps in the evolving crypto landscape.
