Crypto marketplace Bakkt Holdings is reportedly considering a sale

Bakkt (NYSE: BKKT) stock price is in the green at writing following a report that it’s weighing a potential sale. 

Bakkt is considering several strategic options

The crypto marketplace is currently engaged with a financial advisor to consider a bunch of strategic options which includes a potential breakup as well, said people that talked to Bloomberg this morning on condition of anonymity. 

Bakkt shares are up roughly 10% following the news on Friday. 

Earlier in 2024, the New York listed firm warned of “substantial doubt” about its ability to continue as a “going concern” that could have resulted in it being delisted. 

The news arrives amidst an increase in M&A activity in the crypto market. Just days ago, Robinhood announced plans of acquiring Bitstamp as Invezz reported here.

Bakkt stock does not pay a dividend at writing.

Why else is Bakkt stock trending up today?

Bakkt stock price is gaining also because the crypto marketplace teamed up with Crossover Markets on “BakktX” – its upcoming crypto ECN (electronic communication network). 

Ray Kamrath – chief commercial officer of BKKT said in a press release today:

We’re positioning ourselves as an ideal partner for institutions seeking a compliant, qualified trading venue. This will be a truly groundbreaking solution that fulfills a currently unmet need in the U.S. market.

Bakkt Holdings that became a public company via a SPAC merger in 2021 currently commands a valuation of over $280 million. Short interest in the NYSE listed firm sits at about 20% at writing. 

Other recent takeover activity in the crypto space include Riot Platforms proposing to buy Bitfarms. RIOT shares are currently under pressure due to a Kerrisdale Capital short report (find out more).

BKKT shares have struggled in 2024

BKKT share price has been under immense pressure this year particularly after it raised the “going concern” warning in February.

The digital asset marketplace reported a 33% annualised growth in revenue to $17 million last month and announced plans of lowering its headcount by some 20% by the end of this year to cut costs. 

At the time, Bakkt Holdings had forecast up to $4.44 billion in revenue for 2024. On the earnings call, Andy Main – its chief executive identified three strategic priorities: enhancing product solutions, expanding client network, and managing expenses.

Analysts at Citi currently rate Bakkt stock at “sell”. Corporate insider sentiment is also currently negative in shares of the company based out of Alpharetta, Georgia, as per Business Insider.

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