Crypto firm Bakkt faces a 35% stock drop after losing two key customers, raising concerns about its financial stability
Highlights:
- Bakkt’s shares fell by over 35% after Bank of America and Webull decided not to renew their agreements.
- Bank of America accounted for 16% of Bakkt’s loyalty service revenue, while Webull contributed 74% of its crypto services revenue in 2023.
- The company has delayed filing its 2024 annual report, adding to investor concerns.
Summary: Bakkt, a digital asset and crypto services firm, experienced a sharp 35% drop in its stock value following the announcement that two major clients, Bank of America and Webull, will not renew their contracts. Bank of America, responsible for 16% of Bakkt’s loyalty service revenue, will end its agreement in April, while Webull, contributing 74% of its crypto services revenue, will conclude its deal in June.
The company has also delayed filing its 2024 annual report, further unsettling investors. Founded in 2018 and once seen as a game-changer in the crypto space, Bakkt now faces significant challenges in maintaining its financial stability and market position.
