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 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's share price fell by $3.50, or 27.3%, closing at $9.33 per share on March 18, 2025 [3]. Group 2: Future Implications - The termination of contracts with Webull and Bank of America is expected to result in a 73% loss in top-line revenue for Bakkt going forward [3]. - Bank of America represented 17% of Bakkt's loyalty services revenue in the nine months ending September 30, 2024 [3].

Core Insights - Bakkt Holdings, Inc. is under investigation by Bragar Eagel & Squire, P.C. for potential violations of federal securities laws and unlawful business practices [1] - The company announced that Bank of America and Webull Pay will not renew their commercial agreements, leading to a significant drop in stock price on heavy trading volume [2] Company Developments - Bakkt has rescheduled its fourth quarter 2024 earnings release and delayed the filing of its annual 2024 financial report to finalize its consolidated financial statements [2] - The stock experienced a notable decline following the announcement of the non-renewal of commercial agreements and the delays in financial reporting [2] Legal Context - The law firm is reaching out to stockholders who may have suffered losses and is investigating claims related to Bakkt's business practices [1][3]

Financial Performance - The Company incurred a net loss of $798.0 million as of December 31, 2024, raising substantial doubt about its ability to meet obligations for at least 12 months[535]. - The Company’s accumulated deficit totaled $798.0 million as of December 31, 2024, indicating ongoing financial challenges[535]. - Total revenues for 2024 reached $3,490,220, a significant increase of 347% compared to $780,136 in 2023[567]. - Crypto services revenue surged to $3,441,056 in 2024, up from $726,988 in 2023, reflecting a growth of 373%[567]. - Operating loss for 2024 was $92,916, an improvement from a loss of $227,890 in 2023[567]. - Net loss attributable to Bakkt Holdings, Inc. for 2024 was $46,659, compared to a net loss of $74,854 in 2023, indicating a reduction of 37%[567]. - Comprehensive loss for 2024 was $105,121, compared to $225,262 in 2023, showing a reduction of 53%[570]. - The total net loss for the year ended December 31, 2023, was $1,989,934, which represents a significant increase compared to the previous year's loss of $1,411,829[573]. - The total comprehensive loss for the year was $1,103,447, which includes net losses and other comprehensive income adjustments[573]. Capital Structure and Financing - The company entered into a $40.0 million secured revolving credit facility for working capital and general corporate purposes in August 2024[48]. - The fair value of Class 1 and Class 2 warrants was recorded at $42.8 million as of December 31, 2024, with grant date fair values of $27.7 million and $2.6 million respectively[539]. - The Company plans to implement cost reduction measures, including personnel reductions and a hiring freeze, to preserve cash and fund operations[535]. - Cash and cash equivalents decreased to $39,049 in 2024 from $52,882 in 2023, a decline of 26%[565]. - Total liabilities rose to $206,524 in 2024, compared to $129,597 in 2023, marking an increase of 59%[565]. - The Company secured a $40 million revolving credit facility with ICE, maturing on December 31, 2026, to enhance liquidity[601]. Customer Engagement and Services - The company provides crypto-related services including trading, custody, and external transfers for various supported crypto assets[58][60]. - As of December 31, 2024, approximately 47% of total customer crypto assets were self-custodied by Bakkt Crypto[85]. - Webull accounted for 74% and 73% of the company's Crypto services revenues for the years ended December 31, 2024 and 2023, respectively[116]. - Revenue from crypto services has become a significant driver of the business following the acquisition of Bakkt Crypto in April 2023, with expectations for continued growth as the client base expands[118]. - The company plans to add 17 coins to its platform in 2024 and enhance deposit and withdrawal functionalities, expanding its market reach from individual consumers to businesses and trust entities[122]. - The company operates under a "business-to-business-to-consumer" (B2B2C) model, focusing on building scalable partnerships to drive customer acquisition and engagement[124]. Regulatory Compliance and Risk Management - The company has established a comprehensive cybersecurity program and maintains compliance with various regulatory standards, including PCI-DSS and NYDFS requirements[130]. - Bakkt Crypto holds a money transmitter license in each jurisdiction where it operates, ensuring compliance with record-keeping and reporting requirements[132]. - The company is subject to various licensing and regulatory requirements for its virtual currency business, including a "BitLicense" from NYDFS and a Louisiana virtual currency business activity license[133]. - The SEC's evolving stance on crypto assets may lead to changes in regulatory requirements affecting the company's crypto services[135]. - The Company has implemented a comprehensive Anti-Money Laundering (AML) compliance program to prevent illicit activities on its platform[139]. Operational Efficiency and Strategic Planning - The Company’s strategic plan since Q4 2022 focuses on optimizing capital allocation and reducing cash expenses due to ongoing losses[535]. - The assessment of the Company's ability to continue as a going concern involved evaluating forecasted cash flows and revenue growth rate assumptions[536]. - The Company utilized a discounted cash flow model for its impairment testing, reflecting assumptions regarding revenue growth rates and discount rates[543]. - The Company’s revenue growth rate assumptions were evaluated against historical results and relevant market data to ensure accuracy[545]. - The company is actively monitoring evolving privacy, data protection, and cybersecurity regulations that may impact its operations[136]. Employee Relations and Corporate Culture - The company maintains good relations with its employees, with no work stoppages reported[148]. - The company emphasizes a culture of accountability and ethical behavior among its employees, providing regular training on compliance with industry regulations[145]. - As of December 31, 2024, the company had a total of 559 full-time employees, with approximately 15% dedicated to engineering, design, or product roles[148]. Market Expansion and Partnerships - The company has made headway in building partnerships across various industries, with significant untapped growth opportunities remaining[108]. - The acquisition of Apex Crypto LLC was completed on April 1, 2023, enhancing the company's crypto service offerings[583]. - The company is investigating a possible sale or wind-down of Bakkt Trust due to lack of market traction and high capital costs, with a definitive agreement reached to sell it to ICE[584]. - As of December 31, 2024, the company offers crypto services across the U.S., Latin America, Europe, and Asia, expanding its market reach[587].

Bakkt Holdings, Inc. (NYSE:BKKT) Q4 2024 Earnings Conference Call March 19, 2025 5:00 PM ET Company Participants Cody Fletcher - Investor Relations Advisor Andy Main - CEO Karen Alexander - CFO Conference Call Participants Operator Greetings, and welcome to the Bakkt Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen only mode. As a reminder, this conference call is being recorded. I will now turn it over to Cody Fletcher, Investor Relations Advisor at Bakkt. Please ...

Financial Performance - Total revenue for Q4 2024 reached $1,797.3 million, a 737.9% increase year-over-year, while full year revenue was $3,490.2 million, up 347.4% from the previous year[4][11]. - Crypto services revenue for FY 2024 was $3,441.1 million, up from $727.0 million in FY 2023, marking a growth of 373%[33]. - Net loss for Q4 2024 improved by 48.7% to $40.4 million, while the full year net loss decreased by 54.2% to $103.4 million[5][13]. - Adjusted EBITDA loss for Q4 2024 was $6.4 million, a 66.3% improvement year-over-year, and for the full year, it was $64.2 million, down 31.6%[5][13]. - Operating loss for Q4 2024 was $11.7 million, an improvement compared to a loss of $78.5 million in Q4 2023[33]. - Net loss attributable to Bakkt Holdings, Inc. for FY 2024 was $46.7 million, a reduction from $74.9 million in FY 2023[33]. - Adjusted EBITDA loss for FY 2024 was $64.2 million, an improvement from a loss of $93.9 million in FY 2023[40]. Trading and Account Growth - Notional crypto trading volume in Q4 2024 was $1,777.6 million, representing a 778% increase year-over-year and a 465% increase sequentially[6][18]. - Crypto enabled accounts grew to 6.7 million, an 8.1% increase year-over-year, and total transacting accounts increased by 6.5% to approximately 974,429[6]. - Assets under custody increased by 228.1% year-over-year to $2,301.9 million, driven by higher trading prices for crypto assets[6]. Strategic Initiatives - The company signed a definitive agreement to divest its Bakkt Trust custody business to Intercontinental Exchange for $1.5 million, which is expected to streamline operations and reduce annual operating expenses by $3.8 million[12][14]. - BakktX trading infrastructure has been successfully integrated, enhancing efficiency and scalability, enabling the company to handle increased trading volumes with 100% uptime[19]. - The company is exploring strategic alternatives for its Loyalty business segment, including a potential sale or wind-down, to focus on core crypto offerings[15]. Future Outlook - For Q1 2025, Bakkt expects total revenues between $1,043 million and $1,300 million, with gross crypto revenues projected at $1,035 million to $1,290 million[22]. Cash and Assets - Cash and cash equivalents at the end of Q4 2024 totaled $153.7 million, compared to $118.5 million at the end of Q4 2023[36]. - Total assets as of December 31, 2024, were $269.4 million, slightly up from $265.3 million as of December 31, 2023[31]. - Total liabilities increased to $206.5 million as of December 31, 2024, compared to $129.6 million as of December 31, 2023[31]. - Customer funds payable rose significantly to $88.6 million in Q4 2024, up from $32.9 million in Q4 2023[31]. - The company reported a net cash provided by operating activities of $31.4 million in Q4 2024, contrasting with a net cash used of $6.8 million in Q4 2023[35].

BOSTON, March 17, 2025 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Bakkt Holdings, Inc. (NYSE:BKKT) for potential securities law violations. Investors who have lost money in their Bakkt Holdings, Inc. investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/bkkt. What is this all about? Shares of Bakkt Holdings, Inc. fell over 31% in after-hours trading on March 17, 2025, after the company disclosed that Bank ...

BOSTON, March 17, 2025 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Bakkt Holdings, Inc. (NYSE: BKKT) for potential securities law violations. Investors who have lost money in their Bakkt Holdings, Inc. investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/bkkt. What is this all about? Shares of Bakkt Holdings, Inc. fell over 31% in after-hours trading on March 17, 2025, after the company disclosed that Bank ...

Group 1: TMTG and Bakkt Acquisition - Trump Media and Technology Group (TMTG) is in advanced talks to purchase cryptocurrency exchange Bakkt, with an all-share purchase being finalized [1] - Bakkt acknowledged the rumors regarding the potential transaction but refrained from commenting on market speculation [2] - A TMTG acquisition of Bakkt would strengthen Trump's involvement in the cryptocurrency industry, which he has supported during his presidential campaign [5] Group 2: Market Reactions and Cryptocurrency Performance - Bakkt's shares surged 162.5% following the news of the potential acquisition, with an additional 14.8% increase in premarket trading [2] - TMTG shares rose 16.7% on the day of the report but fell over 7% in afternoon trading the following day [4] - Bitcoin's price increased over 32% since November 5, reaching an all-time high of more than $93,000, driven by expectations of a favorable regulatory environment under Trump's administration [6] - The total cryptocurrency market value reached an all-time high of $3.16 trillion, with derivatives open interest exceeding $102 billion [7]

Core Insights - President-elect Donald Trump's social media company, Trump Media & Technology Group (TMTG), is in advanced talks to acquire cryptocurrency firm Bakkt in an all-share deal [1][6] - Bakkt's market capitalization was reported to be over $150 million as of Monday [2] - Bakkt shares surged more than 162% on Monday following news of the potential acquisition, with a further increase of 3.3% on Tuesday, while TMTG shares rose over 16% before falling approximately 9% the next day [4] Company Overview - Bakkt has faced challenges in achieving profitability since going public in 2021, particularly in its crypto custody business, which reported operating losses of $27,000 against revenues of $328,000 for the three months ending September 30 [9] - The crypto custody division is expected to be excluded from the acquisition deal [10] - TMTG, which operates the social media platform Truth Social, has also struggled with profitability, reporting a net loss of $19 million and approximately $1 million in revenue for the period ending September 30 [13] Market Context - The acquisition represents Trump's continued interest in the cryptocurrency sector, aligning with his pro-crypto stance during his campaign [6] - Following Trump's electoral victory, stocks of Bitcoin and crypto firms have seen significant increases as investors anticipate a relaxation of industry regulations [8] - Truth Social has struggled to compete with larger platforms, having only around 76,000 daily active users in the US as of May, compared to X's 100 million users [14][15]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...