Bakkt Holdings experienced a significant 35% drop in its stock price due to the discontinuation of agreements with two significant clients and the possibility of a merger with Trump Media and Technology Group.
Client Decisions and Impact on Bakkt
Bank of America and Webull decided not to renew their agreements with Bakkt. Bank of America accounted for about 16% of Bakkt’s loyalty service revenue in 2023, while Webull provided 74% of the crypto service revenue. These decisions led to a drop in Bakkt's shares to $12.83.
Potential Deal with Trump Media and Technology Group
Trump Media and Technology Group is reportedly in discussions to acquire Bakkt. The all-stock deal would value Bakkt at just over $100 million. However, Bakkt's crypto custody business may not be included in this deal.
History and Current Challenges of Bakkt
Founded in 2018 by Intercontinental Exchange, Bakkt was seen as a game-changer for Bitcoin. The company is, however, facing financial hardships, recently announcing insufficient funds to continue operations.
The loss of major clients and potential acquisition by TMTG highlight Bakkt's volatile market position, leaving the company's future uncertain.
