Heavy setback for Bakkt: Loss of important partners and dramatic price decline in question the future of the crypto service provider

Heavy setback for Bakkt: Loss of important partners and dramatic price decline in question the future of the crypto service provider

Bakt on a downfield: important partners withdraw

The crypto service provider Bakkt suffered a significant setback on the stock exchange on March 18, 2024. After it became known that both the Bank of America and Webull will not extend their cooperation with Bakkt, the course of the Bakkt share (BKKT) fell by 27.28 % and closed at $ 9.33. In addition, the stock lost another 2.25 % and fell to $ 9.12. Compared to its maximum level of $ 1,063 in October 2021, the share has now fallen by more than 99 %.

Important customers withdraw

According to a duty to the supervisory authorities of March 17, the Bank of America decided not to extend its contract with Bakt after April 22, 2024. Webull has also announced that after the expiry date on June 14th, no new contract. These two financial partners were crucial for Bakkt's income. In the first nine months of 2024, the Bank of America contributed 17 % to the turnover of the company's loyalty programs, while Webull even issued 74 % of the cryptocurrency services offered by Bakt.

These negative messages come at a time when the uncertainties regarding Bakk are already great. The company has already moved its Earning Calls planned for March twice; The current date for the announcement is March 19, 2024. Investors fear that further negative developments could come to you after this date.

of growth expectations for the struggle for survival

Bakkt was founded in 2018 by the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), with the aim of becoming a leading provider of cryptocurrency services. ICE continues to hold 55 % of the shares in Bakt, but the future of the company is increasingly on the brink.

not only in November of last year Bakt seemed to experience an unexpected upswing, when rumors about a possible takeover by Donald Trump's media company came into circulation, which led to an increase in the share price of over 160 %. Since this high, however, the course has fallen again.

As early as June 2023, the parent company considered that Bakkt sold or divided into smaller units. In addition, BAKKT received a warning from NYSE in March 2024, since the stock was noted over a longer period of time below the required minimum course of $ 1. This could lead to an impending suspension of the stock exchange.

With the loss of the contracts of Bank of America and Webull, the shifted business figures and the legal threat, Bakkt is increasingly under pressure. Investors are looking forward to the next Earning Call, which could possibly bring more clarity about the upcoming future of the company.