- Bakkt Holdings (BKKT) shares plunged 35% after announcing Bank of America and Webull Pay would not renew their commercial agreements.
- Bank of America represented 16% of Bakkt’s 2023 loyalty service revenue, while Webull accounted for 74% of the company’s crypto service revenue.
- Bakkt has requested an extension to file its 2024 annual report with the SEC as these key partnerships are set to expire in coming months.
Crypto exchange and custody provider Bakkt Holdings (BKKT) saw its stock value collapse Monday, dropping 35% in after-hours trading to $12.83 following the announcement that two major business partners would not renew their commercial agreements with the company.
The cryptocurrency firm disclosed that neither Bank of America (BAC) nor crypto trading application Webull Pay would extend their existing partnerships, representing a significant blow to Bakkt’s revenue streams. These partnerships have been substantial contributors to the company’s financial performance, with Bank of America generating approximately 16% of Bakkt’s loyalty service revenue in 2023.
Even more concerning for investors, Webull Pay represented a dominant 74% of Bakkt’s cryptocurrency service revenue during the same period. The timing of these partnership terminations creates additional uncertainty, with the Bank of America agreement set to expire on April 22 and the Webull contract ending shortly after on June 14.
The dramatic stock price decline marks another chapter in Bakkt’s volatile trading history. The company reached its all-time high of $1,063 per share in October 2021 following its public debut through a merger with VPC Impact Acquisition Holdings. Since that peak, the company has experienced a prolonged downtrend.
Amid these significant business challenges, Bakkt has requested additional time to file its 2024 annual report with the Securities and Exchange Commission (SEC), further raising questions about the company’s financial position and future prospects as it navigates the loss of these critical revenue partnerships.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Ethena Labs and Securitize Partner to Launch Converge Blockchain for Retail and Institutional DeFi Access
- Love Island Star Davide Sanclimenti’s Girlfriend Faces Prison Time in $2.6M Cryptocurrency Tax Case
- Coinshift CEO: Yield-Bearing Stablecoins Will Blur Lines Between Banking and DeFi
- Hashdex Files SEC Amendment to Add XRP, Litecoin and Other Altcoins to Its Crypto ETF
- Move Programming Language on Aptos Offers Enhanced Security Through Bytecode Verification and Runtime Auditing
