Bakkt’s Delisting Fears Rise: NYSE’s Deadline Looms as Shares Hover Under $1

The New York Stock Exchange (NYSE) has issued a warning to Bakkt, a prominent crypto custody and trading platform, indicating potential delisting if its shares fail to surpass the $1 mark consistently.

Bakkt’s Struggle and Response

Bakkt, which entered the stock market in October 2021, has encountered a series of setbacks, marked by consecutive losses and a decline in its share price. Despite efforts to stay afloat, its shares have consistently closed below $1 over the past 30 days, prompting NYSE action.

The platform closed trading on March 13 at 60 cents, signifying a significant drop of nearly 42% from its previous value above $1. Bakkt has expressed its intention to rectify the situation and regain compliance with NYSE standards, even considering a reverse stock split as a potential solution.

Bakkt’s Path to Compliance

According to Bakkt, it has a six-month grace period to restore its share price to meet NYSE requirements. The company outlined its strategy, mentioning the possibility of achieving compliance if its shares reach $1 on the last trading day of any calendar month within the stipulated timeframe.

Intercontinental Exchange (ICE), Bakkt’s parent company and majority owner established the platform in 2018. Bakkt aimed to serve as a hub for institutional crypto transactions, but its retail-facing app, launched in the past, failed to gain traction and was discontinued in February 2023.

Bakkt’s financial woes have persisted since its listing, with eight consecutive quarters of net losses reported. To address its cash flow challenges, Bakkt recently obtained regulatory approval to issue $150 million worth of new shares, aiming to bolster its financial position in a challenging market environment.

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