Bakkt Faces NYSE Delisting Threat as Share Price Plummets

Bakkt, the crypto custody and trading platform, finds itself in a precarious position as the New York Stock Exchange (NYSE) has issued a stern warning of potential delisting if its average closing share price fails to climb above $1. 

In a press release dated March 13, Bakkt revealed that it had been notified by the NYSE of its non-compliance with listing rules, with its share price languishing below $1 on average over the past 30-day trading period.

As reported earlier by TheCoinRise, Bakkt recently filed an amendment to its quarterly report with the United States Securities and Exchange Commission (SEC), with one section on risk factors stating that it “may not be able to continue as a going concern.”

Bakkt Shares Continue to Sink

The market response to Bakkt’s performance has been stark, with its share price closing at a mere 60 cents on March 13, reflecting a decline of nearly 42% over the preceding month. 

This downturn represents a stark contrast to Bakkt’s heyday in late October 2021, when it traded at a peak above $40, according to data from Google Finance.

Ratification of the Situation

In response to the NYSE’s warning, Bakkt has affirmed its commitment to rectify the situation, stating its intention to return to compliance with the exchange’s standards. One potential avenue it may explore, pending shareholder approval, is a reverse stock split—a strategy aimed at consolidating existing shares to elevate their price.

However, time is of the essence for Bakkt, as it faces a six-month window to regain compliance with the NYSE’s requirements. The company clarified that it can achieve compliance at any point within this period by achieving a $1 share price on the last trading day of any calendar month, coupled with an average share price of at least $1 over the preceding 30 trading days.

Bakkt Facing Financial Troubles

Founded by Intercontinental Exchange (ICE) in 2018, Bakkt has been grappling with mounting challenges since its listing on the NYSE in October 2021. Despite initial promises as a platform catering to institutional crypto transactions and boasting a retail-facing app, which was later discontinued in February 2023, Bakkt has encountered persistent setbacks.

Financial woes have compounded Bakkt’s troubles, with eight consecutive quarters of net losses reported since its listing. 

$150M in New Shares

The company’s precarious financial position was underscored by a warning in early February, suggesting a potential cash shortage that could jeopardize its operations over the next 12 months.

In an effort to shore up its finances, Bakkt secured regulatory approval on February 14 to issue $150 million in new shares.