Bakkt Holdings Shares Plunge After Losing Bank of America and Webull as Clients

Bakkt Holdings shares took a steep dive this week as the cryptocurrency exchange and custody firm announced the loss of two major clients.

Bakkt Holdings shares plummeted on Friday after the cryptocurrency exchange and custody firm announced the loss of two major clients and delayed filing its annual report with the SEC.

The stock closed down 27.28% at $9.33.

The news came via a regulatory filing on Thursday, sending aftermarket trading into a tailspin. Bakkt’s stock initially plummeted 35-37% in after-hours trading to $12.83, according to various reports.

The company’s stock price has fallen sharply since it began trading publicly in October 2021, following a merger with VPC Impact Acquisition Holdings. It is now trading more than 96% below its all-time high of $1,063, which it reached on October 29, 2021.

Bakkt was founded in 2018 by the Intercontinental Exchange, which owns a 55% stake in the company. Intercontinental Exchange also owns the New York Stock Exchange.

The recent setbacks follow earlier reports of potential corporate restructuring. In June, according to Bloomberg, Bakkt’s parent company had considered selling the company or breaking it into smaller entities.

In November 2023, Bakkt’s share price surged briefly after reports claimed that Donald Trump’s media company was in advanced talks to acquire the firm. The stock jumped over 162% to $29.71 at that time.

The company’s troubles also led to at least one law firm announcing a possible class action lawsuit. The Law Offices of Howard G Smith is investigating a potential lawsuit against Bakkt, focusing on the company’s actions and the impact on investors.

The potential lawsuit claims federal securities violations, alleging that the terminated agreements with Bank of America and Webull, combined with the delayed earnings calls, caused Bakkt’s stock price to fall and injured investors.

Bakkt also announced that it received a notification from the NYSE that it wasn’t in compliance with the stock exchange’s listing rules after its stock spent 30 days closing below $1 on average.

The company is now planning to apply for an extension of time to complete the filing of its 2024 annual report with the SEC.

Bakkt, Bank of America, and Webull did not immediately respond to requests for comment from several news outlets.