Cryptocurrency Market Trends - Bitcoin's price surged from approximately $39,500 in January 2024 to over $103,000 in January 2025, contributing to a market cap of $1.8 trillion by year-end 2024[183]. - As of January 31, 2025, an estimated 28% of U.S. adults owned cryptocurrencies, nearly doubling adoption since 2021[184]. Bakkt's Business Developments - Bakkt entered into an agreement with ICE to sell Bakkt Trust for $1.5 million plus the assumption of approximately $3.0 million in regulatory capital requirements[185]. - Bakkt's largest client, Webull Pay LLC, will not renew its agreement, which represented approximately 74% of the Company's Crypto services revenue for 2024[195]. - Bank of America also notified Bakkt that it will not renew its commercial agreement, which accounted for about 16% of the loyalty business's net revenue for 2024[196]. - Bakkt executed a $40.0 million secured revolving credit facility with Intercontinental Exchange for working capital and drew $5.0 million under this facility on March 27, 2025[197]. - A reverse stock split was executed at a ratio of 1-for-25, reducing authorized shares from 1 billion to 40 million[198][199]. - Bakkt is exploring strategic alternatives for its loyalty business, including a potential sale or wind-down, to realign with a crypto focus[186]. - A Cooperation Agreement was established with DTR for exclusive payment processing technology, with potential future equity acquisition options[187][188]. - If payments processed using DTR's technology exceed $2 billion in 18 months, Bakkt may be required to purchase DTR equity under a Put Option[190]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $1,074.9 million, an increase of $220.3 million or 25.8% compared to $854.6 million for the same period in 2024[220][221]. - Crypto services revenue increased by $224.4 million, or 26.7%, for the three months ended March 31, 2025, driven by increased trading volume, reaching $1,065.8 million compared to $841.3 million in 2024[222]. - Operating expenses for the three months ended March 31, 2025, were $1,093.4 million, an increase of $207.0 million or 23.4% compared to $886.4 million in 2024[221]. - The company reported a net income attributable to Bakkt Holdings, Inc. of $7.7 million for the three months ended March 31, 2025, compared to a net loss of $8.2 million in the same period of 2024[220]. - As of March 31, 2025, the company had 6.8 million crypto-enabled accounts, up from 6.7 million as of December 31, 2024[219]. - Notional traded volume for the three months ending March 31, 2025, was $1,213.5 million, compared to $1,040.7 million for the same period in 2024, reflecting a significant increase in trading activity[219]. - Assets under custody as of March 31, 2025, were $1,872.6 million, down from $2,301.9 million as of December 31, 2024[219]. - The company held cryptocurrency in custodial products totaling $2,301.9 million at fair value as of December 31, 2024, with a corresponding unrecorded liability of the same amount[218]. Compliance and Regulatory Matters - The company was notified by NYSE on March 13, 2024, for non-compliance with the Listing Rule due to an average closing stock price below $1.00, but regained compliance by June 3, 2024[206][207]. Operational Strategy - The company is focused on expanding its client base through a B2B2C model and enhancing its platform capabilities to drive revenue growth[211]. - The company anticipates needing to draw on additional portions of the ICE Credit Facility in 2025 to fund operations as it scales its Crypto product offering[247]. - Cash and cash equivalents, along with access to the ICE Credit Facility, are believed to be sufficient to fund operations for the next 12 months from the issuance date of the financial statements[247]. - The company made substantial investments in its platforms in 2023 and 2024 to simplify operations and focus on core capabilities critical to its strategy[248]. - The company expects to continue evaluating potential acquisitions or investments in complementary businesses, services, or technologies[247]. Cash Flow and Expenses - The company reported a net cash outflow of $101.3 million from operating activities for the three months ended March 31, 2025, compared to a net cash inflow of $38.4 million for the same period in 2024[250][252][253]. - Net cash flows used in investing activities were $0.1 million for the three months ended March 31, 2025, primarily for capitalized software development costs[254]. - The company has significant contractual obligations totaling $37.3 million as of March 31, 2025, including purchase obligations and future minimum operating lease payments[261]. Cost Management - Loyalty services revenue decreased by $4.1 million, or 30.9%, to $9.2 million for the three months ended March 31, 2025, compared to $13.2 million for the same period in 2024[223]. - Crypto costs increased by $222.7 million, or 26.8%, to $1,054.6 million for the three months ended March 31, 2025, driven by increased crypto service volume[225]. - Execution, clearing, and brokerage fees rose by $2.1 million, or 36.6%, to $7.7 million for the three months ended March 31, 2025, reflecting increased volume in crypto services revenue[226]. - Compensation and benefits decreased by $6.7 million, or 27.4%, to $17.8 million for the three months ended March 31, 2025, primarily due to reductions in stock-based compensation and bonuses[229]. - Professional services expenses increased by $1.6 million, or 42.8%, to $5.2 million for the three months ended March 31, 2025, mainly due to higher legal fees[230]. - Selling, general, and administrative expenses decreased by $4.0 million, or 51.0%, to $3.8 million for the three months ended March 31, 2025, attributed to reductions in general insurance and marketing costs[234]. - Depreciation and amortization increased by $0.2 million, or 286.0%, to $0.2 million for the three months ended March 31, 2025, due to lower net book values of intangible assets[236]. - Restructuring expenses decreased by $5.9 million, or 96.3%, to $0.2 million for the three months ended March 31, 2025, following significant costs in the prior year[237]. Financial Metrics - Adjusted EBITDA loss for the three months ended March 31, 2025, decreased by $1.7 million or 10.6% compared to the same period in 2024, primarily due to $6.7 million lower compensation and benefits expense[275]. - Net income for the three months ended March 31, 2025, was $16,239, while the net loss for the same period in 2024 was $(21,275)[275]. - The company reported an EBITDA of $15,886 for the three months ended March 31, 2025, compared to an EBITDA loss of $(22,018) for the same period in 2024[275]. - Share-based and unit-based compensation expense for the three months ended March 31, 2025, was $3,343, down from $8,013 in the same period in 2024[275]. - The company incurred restructuring expenses of $228 for the three months ended March 31, 2025, compared to $6,140 in the same period in 2024[275]. DTR Equity and Options - The fair market value for the DTR Equity in any Put Option or Call Option transaction will be determined by a third-party valuation from an independent valuation firm[269]. - The price of Class A Common Stock issued in a Put Option or Call Option transaction will be based on the volume weighted average price over the 30 consecutive trading days prior to issuance[269]. - The company is required to obtain a fairness opinion from an independent financial advisor before executing any Call Option or Put Option transaction[268]. - The company will pay Mr. Naheta a termination fee of 3.0% of the DTR Value if the Put Option is terminated after negotiations[268]. - The company emphasizes the use of non-GAAP financial measures, such as Adjusted EBITDA, to provide investors with a clearer understanding of its core operations[270].

First Quarter 2025 Earnings May 12, 2025 Important notice Unless the context otherwise provides, "we," "us," "our," "Bakkt" and like terms refer to Bakkt Holdings, Inc. and its subsidiaries. FORWARD-LOOKING STATEMENTS This presentation and accompanying oral presentation contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, Bakkt's gu ...

Financial Performance - Net income for Q1 2025 was $16.2 million, representing a 176.5% increase year-over-year and a 140.4% increase sequentially[4] - Total revenues for the quarter reached $1,074.9 million, a 25.8% increase year-over-year[10] - Total revenues for Q1 2025 increased to $1,074.9 million, up 26% from $854.6 million in Q1 2024[23] - Crypto services revenue rose to $1,065.8 million, compared to $841.3 million in the same quarter last year, reflecting a significant growth[23] - Operating loss improved by 41.8% year-over-year to $18.5 million[10] - Operating loss narrowed to $(18.5) million in Q1 2025, an improvement from $(31.8) million in Q1 2024[23] - Net income attributable to Bakkt Holdings, Inc. was $7.7 million in Q1 2025, a recovery from a net loss of $(8.2) million in Q1 2024[23] - Adjusted EBITDA loss for Q1 2025 was $(14.5) million, compared to a loss of $(16.3) million in Q1 2024, indicating a slight improvement[29] Market Activity - Notional traded volume increased 16.6% year-over-year to $1,213.0 million, driven by stronger crypto market activity[8] - Crypto-enabled accounts grew to 6.8 million, up 7.9% year-over-year[8] - Assets under custody rose 52.5% year-over-year to $1,872.6 million, primarily due to higher trading prices for crypto assets[8] Expenses and Liabilities - Total operating expenses were $1,093.4 million, up 23.3% year-over-year[10] - Total assets decreased to $176.3 million as of March 31, 2025, down from $269.4 million a year earlier[21] - Total liabilities reduced to $94.8 million from $206.5 million, showing a significant decrease[21] - Cash and cash equivalents at the end of Q1 2025 were $56.5 million, down from $190.8 million at the end of Q1 2024[25] - Customer funds payable dropped to $12.0 million in Q1 2025 from $88.6 million in Q1 2024, indicating a substantial decline[21] - Total stockholders' equity increased to $81.6 million as of March 31, 2025, compared to $62.9 million a year prior[21] Strategic Developments - Bakkt entered into a cooperation agreement with Distributed Technologies Research (DTR) in Q1 2025 for access to AI and stablecoin payment infrastructure[4] - A commercial agreement with DTR is expected to be completed by Q3 2025, anticipated to bring new products for customers[4] - The leadership team was strengthened with the addition of Ankit Khemka as Chief Product Officer and Phillip Lord as President of Bakkt International[4]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Bakkt Holdings, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on June 2, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - Investors who bought Bakkt securities between March 25, 2024, and March 17, 2025, may be eligible to join a class action lawsuit [1][2]. - A class action lawsuit has already been filed, and interested parties must act by the June 2, 2025 deadline to serve as lead plaintiff [2][6]. - The lawsuit alleges that Bakkt made false or misleading statements regarding its crypto services revenue and client relationships, which led to investor damages when the truth was revealed [4]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3]. - Founding partner Laurence Rosen has been recognized as a Titan of Plaintiffs' Bar by Law360, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [3].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Bakkt Holdings, Inc. due to allegations of misleading statements regarding its revenue sources and client relationships, particularly concerning its dependence on Webull and Bank of America [3][5]. Group 1: Legal Investigation and Claims - The law firm is encouraging investors who suffered losses in Bakkt to contact them to discuss their legal options [1]. - A federal securities class action has been filed against Bakkt, with a deadline of June 2, 2025, for investors to seek the role of lead plaintiff [3][8]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [4]. Group 2: Allegations Against Bakkt - The complaint alleges that Bakkt and its executives violated federal securities laws by making false or misleading statements about the stability and diversity of its crypto services revenue [5]. - It is claimed that Bakkt's crypto services revenue was heavily reliant on a single contract with Webull, which accounted for 74% of its crypto services revenue in the nine months ending September 30, 2024 [6]. - Additionally, Bank of America was responsible for 17% of Bakkt's loyalty services revenue, and both companies are terminating their contracts, leading to a projected 73% loss in top-line revenue [6]. Group 3: Market Reaction - Following the announcement of the contract terminations, Bakkt's share price dropped by $3.50, or 27.3%, closing at $9.33 per share on March 18, 2025, with unusually high trading volume [7].

Core Viewpoint - A class action lawsuit has been filed against Bakkt Holdings, Inc. for allegedly misleading investors about the stability and diversity of its crypto services revenue, particularly its reliance on a single contract with Webull [1][2]. Group 1: Allegations and Financial Impact - The complaint alleges that Bakkt misrepresented the stability and diversity of its crypto services revenue and failed to disclose its substantial dependence on a single contract with Webull [2]. - Bakkt disclosed that Webull accounted for 74% of its crypto services revenue for the nine months ending September 30, 2024, and that 98% of its total revenue came from crypto services during the same period [3]. - Following the announcement of Webull's termination of their commercial agreement, Bakkt is expected to face a 73% loss in top-line revenue, leading to a significant drop in share price by $3.50 or 27.3% to close at $9.33 per share on March 18, 2025 [3]. Group 2: Legal Proceedings and Participation - Shareholders are encouraged to participate in the class action against Bakkt Holdings, with options to serve as lead plaintiff or remain an absent class member [4]. - Robbins LLP operates on a contingency fee basis, meaning shareholders will incur no fees or expenses for representation [5].

Core Viewpoint - A class action lawsuit has been filed against Bakkt Holdings, Inc. concerning allegations of securities fraud and unlawful business practices [2][4]. Group 1: Lawsuit Details - Investors are encouraged to contact Pomerantz LLP for participation in the class action, with a deadline to apply as Lead Plaintiff by June 2, 2025 [2][3]. - The lawsuit pertains to Bakkt and its officers/directors' potential engagement in securities fraud [2]. Group 2: Revenue Impact - Bakkt disclosed that Webull Pay LLC will terminate its commercial agreement, which accounted for 74% of Bakkt's crypto services revenue in the nine months ending September 30, 2024 [4]. - The company derived 98% of its total revenue from crypto services during the same period [4]. - Additionally, Bank of America is terminating its loyalty services contract, which represented 17% of Bakkt's loyalty services revenue [4]. - These cancellations are projected to result in a 73% loss in top line revenue going forward [4]. Group 3: Stock Market Reaction - Following the announcement of these cancellations, Bakkt's stock price fell by $3.50 per share, a decrease of 27.28%, closing at $9.33 per share on March 18, 2025 [5].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Bakkt Holdings, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on June 2, 2025, for a class action lawsuit [1] Group 1: Class Action Details - Investors who bought Bakkt securities between March 25, 2024, and March 17, 2025, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1] - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by June 2, 2025 [2] - The lawsuit alleges that Bakkt made false or misleading statements regarding its crypto services revenue and client relationships, which led to investor damages when the truth was revealed [4] Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3] - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3] - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, highlighting the firm's expertise in this area [3]

Core Viewpoint - A class action has been filed against Bakkt Holdings, Inc. for allegedly misleading investors about the stability and diversity of its crypto services revenue, particularly its dependence on a single contract with Webull [1][2]. Allegations - The complaint alleges that Bakkt misrepresented the stability and diversity of its crypto services revenue and failed to disclose its substantial dependence on a single contract with Webull [2]. - Bakkt's crypto services revenue was revealed to be 74% dependent on Webull, and 98% of its total revenue came from crypto services during the specified period [3]. Recent Developments - On March 17, 2025, Bakkt announced that Webull would terminate its commercial agreement effective June 14, 2025, leading to a projected 73% loss in top-line revenue [3]. - Additionally, Bank of America is terminating its loyalty services contract, which accounted for 17% of Bakkt's loyalty services revenue [3]. - Following this news, Bakkt's share price dropped by $3.50, or 27.3%, closing at $9.33 per share on March 18, 2025 [3]. Class Action Participation - Shareholders may be eligible to participate in the class action against Bakkt and can contact Robbins LLP for more information [4]. - A lead plaintiff can represent other class members in directing the litigation, but participation is not required to be eligible for recovery [4]. Company Background - Robbins LLP is recognized for its work in shareholder rights litigation, focusing on helping shareholders recover losses and improve corporate governance [5].

Core Viewpoint - Class actions have been initiated on behalf of stockholders of Solaris Energy Infrastructure, Actinium Pharmaceuticals, Bakkt Holdings, and Cerevel Therapeutics, with specific allegations of misleading statements and omissions of material facts regarding their business operations and prospects [1]. Solaris Energy Infrastructure, Inc. (NYSE: SEI) - Class period is from July 9, 2024, to March 17, 2025, with a lead plaintiff deadline of May 27, 2025 [2]. - Allegations include failure to disclose that Mobile Energy Rentals LLC had minimal corporate history, lacked a diversified earnings stream, and was co-owned by a convicted felon associated with turbine-related fraud [2]. - Claims that Solaris overstated commercial prospects from an acquisition and inflated profitability metrics by not properly depreciating turbines, leading to materially misleading statements [2]. Actinium Pharmaceuticals, Inc. (NYSE: ATNM) - Class period is from October 31, 2022, to August 2, 2024, with a lead plaintiff deadline of May 26, 2025 [3]. - The complaint alleges that Actinium made false claims regarding the strength of data submitted to the FDA for its Biologics License Application for Iomab-B, later admitting the need for additional clinical trials [3]. - Public statements were deemed materially misleading, resulting in investor damages when the truth was revealed [3]. Bakkt Holdings, Inc. (NYSE: BKKT) - Class period is from March 25, 2024, to March 17, 2025, with a lead plaintiff deadline of June 2, 2025 [4]. - Allegations include misrepresentation of the stability and diversity of crypto services revenue, which was heavily reliant on a single contract with Webull [4]. - Positive statements about the company's business were claimed to be materially misleading due to undisclosed dependencies [4]. Cerevel Therapeutics Holdings, Inc. (CERE) - Class period is from October 11, 2023, to August 1, 2024, with a lead plaintiff deadline of June 3, 2025 [6]. - The complaint alleges that Cerevel's offering documents omitted material facts about AbbVie's interest in acquiring the company at a significantly higher price than the offering price of $22.81 per share [6]. - Claims that Cerevel's controlling shareholder acquired shares at an artificially depressed price while possessing nonpublic information, leading to a substantial windfall when AbbVie announced the acquisition at $45 per share [6][7].