Bakkt stock tumbles nearly 30% after losing Bank of America and Webull

Crypto steadfast Bakkt’s stock terms plummeted implicit 27% connected March 18 aft the institution revealed that 2 of its largest clients, Bank of America and Webull, would not beryllium renewing their commercialized agreements.

In a March 17 regulatory filing, Bakkt said it had received announcement of Bank of America not renewing its commercialized statement erstwhile the woody expires connected April 22. It besides disclosed that the brokerage platform Webull had besides decided not to renew its statement erstwhile it ends connected June 14. 

Bank of America represented 17% of Bakkt’s loyalty services gross successful the 9 months ending Sept. 30, 2024, according to the filing. Webull represented 74% of the company’s crypto services revenue crossed the aforesaid period. 

Stocks successful Bakkt (BKKT) tumbled connected March 18 aft the filing, and its stock terms closed the time down 27.28% astatine $9.33. BKKT saw a further diminution of 2.25% to $9.12 aft the bell, according to Google Finance. 

Bank of America and Webull won’t renew agreements with Bakkt, which saw its banal sell-off. Source: Google Finance

Overall, the banal is down implicit 96% from its all-time precocious of $1063, which it deed connected Oct. 29, 2021. 

Bakkt has besides postponed its antecedently announced net league twice, with the latest rescheduling slating the telephone for March 19. 

Bakkt was founded successful 2018 by the Intercontinental Exchange, which holds a 55% involvement and besides owns the New York Stock Exchange (NYSE).

Related: Bakkt declares $780M full-year gross successful 2023 net report

At slightest 1 instrumentality firm, the Law Offices of Howard G. Smith, announced a imaginable people enactment against Bakkt, alleging national securities violations. The imaginable suit claims that the terminated agreements with Bank of America and Webull, combined with the rescheduled net call, caused Bakkt’s banal terms to fall, “thereby injuring investors.” 

Bakkt, Bank of America and Webull didn’t instantly respond to requests for comment. 

In November past year, Bakkt’s share terms jumped implicit 162% to $29.71 and continued to ascent 16.4% to $34.59 aft a study claimed Donald Trump’s media institution was successful precocious talks to get the firm. 

Before that, Bakkt’s genitor institution considered selling it oregon breaking the firm into smaller entities successful June, according to a Bloomberg report. 

It besides received a notification from the NYSE successful March that it wasn’t successful compliance with the banal exchange’s listing rules aft its banal spent 30 days closing beneath $1 connected average.

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