Bakkt Faces Stock Decline Amid Non-Renewal of Key Agreements

According to Cointelegraph, Bakkt's share price experienced a significant drop on March 18, closing down over 27% following the announcement that two major clients, Bank of America and Webull, will not renew their commercial agreements. In a regulatory filing dated March 17, Bakkt revealed that Bank of America will not renew its agreement upon expiration on April 22, while Webull will also end its agreement on June 14. These developments have had a substantial impact on Bakkt's financial outlook, as Bank of America accounted for 17% of Bakkt's loyalty services revenue in the nine months ending September 30, 2024, and Webull represented 74% of the company's crypto services revenue during the same period. The news of these non-renewals led to a sharp decline in Bakkt's stock, with shares closing at $9.33, down 27.28% on March 18. The stock continued to fall by an additional 2.25% to $9.12 after trading hours, as reported by Google Finance. This decline is part of a broader trend, with Bakkt's stock down over 96% from its all-time high of $1063, reached on October 29, 2021. The company has also postponed its earnings conference call twice, with the latest rescheduling set for March 19. Bakkt, founded in 2018 by the Intercontinental Exchange, which owns a 55% stake and the New York Stock Exchange, is facing increased scrutiny as a result of these developments. In light of these challenges, at least one law firm, the Law Offices of Howard G. Smith, has announced a potential class action lawsuit against Bakkt, alleging federal securities violations. The lawsuit claims that the termination of agreements with Bank of America and Webull, along with the rescheduled earnings call, contributed to the decline in Bakkt's stock price, thereby harming investors. Neither Bakkt, Bank of America, nor Webull have responded to requests for comment on the situation. In November of the previous year, Bakkt's share price surged over 162% to $29.71, continuing to rise to $34.59 after reports suggested that U.S. President Donald Trump's media company was in advanced talks to acquire the firm. Prior to this, Bakkt's parent company had considered selling or restructuring the firm into smaller entities, as reported by Bloomberg in June. Additionally, Bakkt received a notification from the NYSE in March regarding non-compliance with listing rules after its stock closed below $1 on average for 30 consecutive days.