Bakkt Holdings Faces Significant Share Decline Amid Contract Non-Renewals

According to CoinDesk, Bakkt Holdings, a crypto exchange and custody firm, experienced a sharp decline in its share value following the announcement that Bank of America and Webull Pay would not renew their commercial agreements with the company. This development has led to a significant drop in Bakkt's stock, which fell by 35% in after-hours trading, reaching $12.83. This is a stark contrast to its all-time high in October 2021, when shares were valued at $1,063 shortly after Bakkt went public through a merger with VPC Impact Acquisition Holdings. The non-renewal of these agreements is a substantial blow to Bakkt's revenue streams. Bank of America contributed approximately 16% to Bakkt’s loyalty service revenue in 2023, while Webull accounted for a significant 74% of the company's crypto service revenue during the same period. The agreement with Bank of America is set to expire on April 22, and the contract with Webull will conclude on June 14. In response to these developments, Bakkt has sought an extension to file its 2024 annual report with the Securities and Exchange Commission (SEC), indicating the company's need for additional time to address these financial challenges.