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Bakkt, the crypto custody and trading platform, finds itself in a precarious position as the New York Stock Exchange (NYSE) has issued a stern warning of potential delisting if its average closing share price fails to climb above $1.&nbsp;
In a press release dated March 13, Bakkt revealed that it had been notified by the NYSE of its non-compliance with listing rules, with its share price languishing below $1 on average over the past 30-day trading period.
As reported earlier by TheCoinRise, Bakkt recently<a href="https://thecoinrise.com/bakkt-does-not-have-enough-cash-to-last-the-next-12-months/" rel="noopener noreferrer nofollow"> filed an amendment to its quarterly report</a> with the United States Securities and Exchange Commission (SEC), with one section on risk factors stating that it “may not be able to continue as a going concern.”
<h2 id="span-style-font-weight-400-bakkt-shares-continue-to-sink-span">Bakkt Shares Continue to Sink</h2>
The market response to Bakkt’s performance has been stark, with its share price closing at a mere 60 cents on March 13, reflecting a decline of nearly 42% over the preceding month.&nbsp;
This downturn represents a stark contrast to Bakkt’s heyday in late October 2021, when it traded at a peak above $40, according to <a href="https://www.google.com/finance/quote/BKKT:NYSE" rel="noopener noreferrer nofollow">data</a> from Google Finance.
<h3 id="span-style-font-weight-400-ratification-of-the-situation-span">Ratification of the Situation</h3>
In response to the NYSE’s warning, Bakkt has <a href="https://www.businesswire.com/news/home/20240313401585/en/" rel="noopener noreferrer nofollow">affirmed</a> its commitment to rectify the situation, stating its intention to return to compliance with the exchange’s standards. One potential avenue it may explore, pending shareholder approval, is a reverse stock split—a strategy aimed at consolidating existing shares to elevate their price.
However, time is of the essence for Bakkt, as it faces a six-month window to regain compliance with the NYSE’s requirements. The company clarified that it can achieve compliance at any point within this period by achieving a $1 share price on the last trading day of any calendar month, coupled with an average share price of at least $1 over the preceding 30 trading days.
<h2 id="span-style-font-weight-400-bakkt-facing-financial-troubles-span">Bakkt Facing Financial Troubles</h2>
Founded by Intercontinental Exchange (ICE) in 2018, Bakkt has been grappling with mounting challenges since its listing on the NYSE in October 2021. Despite initial promises as a platform catering to institutional crypto transactions and boasting a retail-facing app, which was later discontinued in February 2023, Bakkt has encountered persistent setbacks.
Financial woes have compounded Bakkt’s troubles, with eight consecutive<a href="https://thecoinrise.com/bakkt-holding-releases-q4-earnings-lower-than-its-expectations/" rel="noopener noreferrer nofollow"> quarters of net losses reported since its listing</a>.&nbsp;
<h3 id="span-style-font-weight-400-150m-in-new-shares-span">$150M in New Shares</h3>
The company’s precarious financial position was underscored by a warning in early February, suggesting a potential cash shortage that could jeopardize its operations over the next 12 months.
In an effort to shore up its finances, Bakkt secured regulatory approval on February 14 to<a href="https://thecoinrise.com/bakkt-approved-to-proceed-with-150m-securities-sale/" rel="noopener noreferrer nofollow"> issue $150 million in new shares</a>.&nbsp;
The post <a href="https://thecoinrise.com/bakkt-faces-nyse-delisting-threat-as-share-price-plummets/" rel="noopener noreferrer nofollow">Bakkt Faces NYSE Delisting Threat as Share Price Plummets</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Bakkt Faces NYSE Delisting Threat as Share Price Plummets

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