Bakkt Release Q3 Report, Records 73% Increase in Crypto Conversion Volume

Digital assets service provider Bakkt Holdings has released its earnings and operational report for the third quarter which ended in September.

Based on the listings in the Q3 report, Bakkt digital assets conversion volume of $182 million increased up to 73% year-over-year. The increase was quoted to be due to loyalty redemption related to increased travel activity.

Gavin Michael, President and Chief Executive Officer (CEO) of Bakkt Holdings said “We are pleased with the momentum we are building with net revenue up 41% year-over-year and digital asset conversion volumes up 73% year-over-year. Our focus on execution is paying off and we are proud to have initial activations with our crypto capabilities. We are working closely with our partners to bring even more of them to market in the near term.” 

In addition to the increased digital assets conversion volume, the transacting accounts of 678,000 increased 21% year-over-year. As a result of a significant improvement in travel loyalty redemptions, the net revenue of $12.9 million increased 41% year-over-year. 

Other financials quoted in the report stated that “Operating expense of $1,607.8 million increased year-over-year, primarily driven by a partial, non-cash goodwill and other intangible assets impairment charge of $1,547.7 million due to the elongated timing for expected crypto asset product activations and the decline in our market capitalization. Adjusted EBITDA (non-GAAP) of $(30.7) million decreased 27% year-over-year, due to higher operating expenses.”

Bakkt Acquires Apex Crypto For $200M

Gavin continued by announcing its recent acquisition of Apex Crypto, which he believes will boost the company’s growth plans.

Bakkt signed a definitive agreement with Apex Fintech Solutions to acquire Apex Crypto. The deal was worth $200 million to be said in two installments of $55 million in cash and $145 million in Bakkt stocks and seller notes after the completion of its quarterly set goals.

Bakkt is optimistic that its purchase of Alpex Crypto will have a significant impact in the movement into new territories especially, for broker-dealers, fintechs, trading app companies, and neo-banks. Another highlight of Bakkt Holdings Q3 is the launch of the Crypto platform for global payment which is currently in the pilot stage.