New York Stock Exchange-backed Bakkt sees sell-off – Report
New York Stock Exchange (NYSE)-listed crypto platform Bakkt's parent company is reportedly considering selling the firm or splitting the company into smaller entities, insiders told Bloomberg.
The board may want to maintain Bakkt's current structure and abandon the sale or dissolution of the company altogether, the sources told the outlet.
News of the potential sale follows several high-profile acquisitions and takeover offers in the crypto space, including Robinhood's offer to buy Bitstamp exchange and Coreweave's unsolicited Bitcoin miner Core Scientific.
Bakkt has been suffering from poor price performance in the market. The stock price of the crypto company It has fallen sharply to around $19 from $59.57 in early 2024.
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In the year In February 2024, the institutional crypto firm declared that it was running low on cash and could no longer keep the business open. Bakht then applied for regulatory approval to raise $150 million in capital to continue operations.
Shortly after the filing, US regulators approved Buckett's plan to raise capital by selling it to investors for $150 million.
A month after the confirmed cash crunch and subsequent sale of securities, Buckett CEO and President Andy Mayne issued a statement saying the company had strengthened its balance sheet and was not in danger of closing.
The main pointed out that Bakkt 2023 income of 780 million things turned over to the company. However, a look at Bakkt's price performance and financials tells a different story.
Bakkt has suffered eight straight quarterly losses since it listed on stock exchanges in 2021, and its share price has been in steady decline since the start.
Despite this, Bakkt's current CEO is still optimistic, expecting revenues in the billions of dollars by 2024.
According to Main, a consolidated balance sheet and new operations could bring in $3.2 billion to $5 billion in revenue by 2024.
These figures will allow Bakkt to break even in 2024, the CEO said.
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