The cryptocurrency company Bakkt experienced a staggering 35% plunge in its stock value. Two of its largest clients, Bank of America and Webull, will not be renewing their business contracts, which caused its share price to conclude March 18 trading down more than 27%.
Bakkt stated in a regulatory filing dated March 17 that it had been notified by Bank of America that it would not be renewing its commercial arrangement when it expires on April 22. Additionally, it said that Webull, a brokerage platform, has also chosen not to extend its contract when it expires on June 14.
Revenue Impact of Lost Contracts
Bakkt's statement reveals that in the nine months ending 2023, 16% of its income from loyalty services came from Bank of America. During the same period, Webull accounted for 74% of the company's revenue from crypto services.
Following the filing, Bakkt (BKKT) stocks declined rapidly on March 18, closing the day at $9.33, down 27.28%. After the bell, BKKT crashed another 2.25% to $9.12, according to Google Finance.
Bakkt’s Struggles in the Crypto Industry
Bakkt was founded by Intercontinental Exchange (owner of the NYSE) to allow Starbucks consumers to pay for coffee using Bitcoin. It gradually changed its emphasis to cryptocurrency custody and trading services but has struggled financially. In February, the company announced that it would not have enough money to continue operating for another 12 months.
The cryptocurrency custody and trading company announced a $226 million financial loss in 2023, despite a sharp rise in overall revenue to $780 million, according to Finance Managements.
Bakkt’s Stock Volatility and Regulatory Challenges
Bakkt's share price increased by more than 162% to $29.71 in November 2023, rising further to $34.59 after claims surfaced that US President Donald Trump's media organization was in final negotiations regarding buying the firm.
However, Bakkt’s parent business had previously contemplated selling or reorganizing the company into smaller entities, according to Bloomberg in June.
Furthermore, the NYSE notified Bakkt in March of its failure to comply with listing regulations after the share price closed under $1 per share for thirty days in a row. The company additionally received a letter from the NYSE, stating that it was not by the financial exchange's listing guidelines after its stock averaged a 30-day close below $1.
Legal Actions and Possible Class-Action Lawsuit
Given these difficulties, the Law Offices of Howard G. Smith has declared that it may file a class action lawsuit against Bakkt, claiming that the company has violated federal securities laws.
According to the lawsuit, the rescheduled conference call and the termination of agreements with Bank of America and Webull caused Bakkt's stock price to drop, which hurt investors.
Requests for comment on the matter have not received a response from Bakkt, Bank of America, or Webull, as reported by Cointelegraph.
Disclaimer
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About the Author
Rabia Majeed covers indices, ETFs, and portfolio construction for TECHi readers building allocations rather than picking single names. Her coverage spans S&P 500 internals, sector-rotation signals, factor premiums (quality, momentum, low-vol), and the cost-basis details — expense ratios, tracking error, tax efficiency — that compound over long holds. She writes about the fund-structure decisions most retail coverage skips.
