20.03.2025 05:09
The cryptocurrency custody company Bakkt suffered a heavy blow in the stock market after its main clients, Bank of America and Webull, announced that they would not renew their commercial agreements. The company's shares closed at $9.33 on March 18, falling by 27.28%. Bakkt was already facing tough times with NYSE's listing warning and delayed financial reports.
The cryptocurrency custody firm Bakkt experienced a significant loss in the stock market after losing two major clients. The company's shares fell by over 27% on March 18 after announcing that it would not renew its commercial agreements with Bank of America and Webull. These two clients accounted for a significant portion of the company's loyalty and cryptocurrency services revenue.
Bakkt Lost Clients That Constituted a Large Portion of Its Revenue
After announcing that it would not renew its commercial agreements with Bank of America and Webull, the cryptocurrency custody company Bakkt took a heavy hit in the stock market on March 18. The company's shares closed the day down 27.28% at $9.33.
In a regulatory filing made by Bakkt on March 17, it was stated that the financial giant Bank of America decided not to renew its commercial agreement, which will expire on April 22. The same filing revealed that the popular brokerage platform Webull would also not extend its agreement, which is set to end on June 14.
According to official documents, Bank of America accounted for 17% of Bakkt's loyalty services revenue during a nine-month period ending on September 30, 2024. Even more striking was that Webull represented 74% of the company's cryptocurrency services revenue. This situation signifies a serious loss of income for Bakkt.
Due to the impact of the bad news, Bakkt (BKKT) shares experienced a sharp decline on March 18. According to market data, the stock continued to lose value after normal trading hours, dropping an additional 2.25% to $9.12.
The company's stock value has lost over 96% since reaching an all-time high of $1,063 on October 29, 2021. This decline indicates that the company is in a long-term downward trend.
Bakkt's challenges are not limited to this. The company has had to postpone its previously announced earnings conference twice, with the latest call scheduled for March 19.
Founded in 2018 by Intercontinental Exchange, Bakkt still has 55% of its shares owned by this company. Intercontinental Exchange is also known to be the owner of the New York Stock Exchange (NYSE).
Following these developments, legal troubles also seem to be on the horizon. Howard G. Smith Law Offices announced that they are preparing to file a class-action lawsuit against Bakkt for federal securities violations. The potential lawsuit claims that the terminated agreements with Bank of America and Webull, along with the postponed earnings call, have harmed investors by lowering the stock price.
Last November, Bakkt's shares painted a very different picture. At that time, the stock price had risen to $29.71, an increase of over 162%. Following this rise, shares climbed an additional 16.4% to $34.59 after a report claimed that Donald Trump's media company was in advanced talks to acquire the firm.