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Bakkt Holdings Inc. has received a notification from the NYSE that the exchange might delist the stock if it does not recover its value.
Bakkt (NYSE: BKKT) is a crypto custody firm that was listed on NYSE in October 2021, and now, NYSE is threatening to delist it in March 2024. The threat to delist is conditional on the valuation of the firm’s share prices. It can be delisted if the average closing price does not reach back to the mark of $1.
Breaking the Notification by NYSE
On March 13, Bakkt presented a press release that notified its stakeholders about the NYSE notification that the company did not comply with the stock exchange’s listing rules. Its shares have been trading at a price below $1 on average in the last 30 trading sessions.
In the previous trading session on March 13, the stock trading opened at a day low of $0.58, moved by 2.8%, and closed at $0.60. The stock prices fell below $1 on February 7. It has been trading below $1 or approximately $1 since then. In the March trading session, the stock price did not reach $1 for once.
Bakkt’s Actions after the Notification
The officials from Bakkt said that the company aims to treat the stock price deficiency with sincerity, will return to compliance with the standards of the NYSE, and will consider the action after getting shareholder approval.
The potential actions to resolve the problem include reverse stock splits, where existing shares are clubbed together to raise the share price.
Bakkt has approximately six months to reach the desired price. The firm stated that it can regain compliance within the desired time frame. Compliance will be regained if, on any last trading month of the calendar month within the next six months, the share price reaches the $1 value and an average share price of at least $1 over the last 30-day trading window ending on the last trading of the month. If both of these conditions are fulfilled, compliance will be regained.
Background of Bakkt Holdings Inc
The owner of the NYSE, Intercontinental Exchange (ICE), founded Bakkt Holdings Inc. in 2018. ICE is the majority owner of the crypto firm Bakkt. The firm was listed on the NYSE in 2021.
During its launch, Bakkt portrayed itself as a platform for institutions to buy, sell, store, and spend cryptocurrencies. It once had a retail-facing app as well, which was shut down in February 2023. It could never take off again since then due to several competing crypto exchanges.
After getting listed in October 2021, it reported eight continuous quarters of net losses and warned in the first half of February that it might experience a cash crunch and might not be able to pay off its operational expenses by the end of 2024.
Nevertheless, to raise further capital from the public, it received regulatory approval on February 14. The approved offer allowed Bakkt to raise $150 Million in cash by issuing new shares.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
