Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $214.5 million, with gross crypto services revenue of $199.4 million, significantly increasing year-over-year due to the acquisition of Bakkt Crypto [26][50] - Operating expenses, excluding crypto costs and impairments, were $27.8 million, a decrease of 55% year-over-year, primarily due to reduced compensation and benefits [28][50] - The net loss for the quarter was $78.7 million, resulting in a diluted net loss of $0.29 per share [28][50] Business Line Data and Key Metrics Changes - Net loyalty services revenue was $15.1 million, down 2% year-over-year, driven by a 9% decline in subscription and services revenue [52] - Crypto trading volumes were up 6% sequentially, but still below the overall industry growth of over 100% [30] - Assets under custody surpassed $1 billion, reflecting a 39% sequential increase due to higher coin prices [80] Market Data and Key Metrics Changes - Notional trading volumes increased over 206% from Q4 2023, indicating strong market activity [22] - The company reported 6.2 million crypto-enabled accounts at the end of Q4 2023, with 915,000 transacting accounts [79] - The crypto market is showing signs of recovery, with increased interest from retail clients and higher transaction volumes [15][22] Company Strategy and Development Direction - The company is at an inflection point, focusing on scaling the business and enhancing its product offerings, particularly in institutional crypto capabilities [9][20] - International expansion is a key focus, with recent launches in Hong Kong, Singapore, Brazil, Guatemala, and Spain [21] - The strategic priorities include growing the client network, expanding product offerings, and managing expenses effectively [41][68] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stabilization and improvement of the crypto market, driven by recent positive developments [15][22] - The company aims to achieve adjusted EBITDA breakeven by the end of 2024, with a focus on building scale and driving financial results [70][91] - Management acknowledged the challenges faced due to stock price performance but emphasized commitment to enhancing shareholder value [35][90] Other Important Information - The company successfully closed a capital raise, alleviating concerns about its ability to continue as a going concern [17][31] - A reverse stock split is planned to address stock price issues, subject to shareholder vote [91] - The company is enhancing its trading platform to support crypto coin pair trading offerings, expected to activate in the second half of 2024 [33] Q&A Session Summary Question: Why is the stock price underperforming despite strong crypto prices? - Management noted that amended SEC filings raised concerns about going concern risks, negatively impacting stock performance [88][90] Question: What is Bakkt doing to regain shareholder confidence? - Management emphasized the importance of demonstrating a consistent track record of building scale and driving financial results towards profitability [91][92] Question: When can the company expect to reach adjusted EBITDA breakeven? - Management indicated that the goal remains to achieve this by the end of 2024, with optimism about activating revenue from new clients [70][95] Question: What is the outlook for the custody business and revenue growth? - Management expects revenue growth to pick up in the second half of the year, particularly from new partnerships and ETF providers [72][73] Question: How will Bakkt address potential future capital needs? - Management stated that having an effective shelf registration will expedite access to liquidity if needed, but currently, they believe they have sufficient liquidity for at least the next 12 months [102]

Business Strategy and Priorities - Bakkt is focused on enhancing shareholder value and capitalizing on crypto market opportunities[4] - Key priorities for 2024 include growing the client network, delivering new institutional crypto capabilities, and reducing operating expenses[18] - The company aims to broaden its client network and deepen existing relationships, while strategically allocating capital[6] - Bakkt is expanding into new international markets, including Brazil, Guatemala, Spain, Hong Kong, Singapore, and Taiwan[7] Financial Performance and Outlook - Total revenues for FY23 were $780.1 million, reflecting a significant increase in gross crypto trading revenue due to the Bakkt Crypto acquisition[40] - Operating expenses for FY23 totaled $1008 million, including $722.3 million in crypto costs and execution, clearing, and brokerage fees[40] - Bakkt anticipates total revenues of $3292 million to $5114 million and gross crypto revenues of $3239 million to $5057 million for FY24[79] - The company projects operating expenses of $160 million to $170 million for FY24, representing a decrease of approximately 13-18% from 2023[79, 78] - The adjusted EBITDA loss for 4Q23 was $(19) million, a decrease YoY primarily due to a reduction in total compensation and benefits[29] Key Performance Indicators - Notional crypto traded volume increased significantly from December 2023 to March 2024, reaching $463 million in March[8] - Client assets under custody surpassed $1 billion[19] - Crypto-enabled accounts have steadily increased QoQ, reaching 62 million in 4Q23[71]

Bakkt Loyalty Solutions: We operate our Loyalty Solutions business primarily in the United States and in Canada under the legal entities Bridge2 Solutions, LLC, Bridge2 Solutions Canada Ltd and Aspire Loyalty Travel Solutions, LLC. This business enables clients (including financial institutions, airlines and other loyalty sponsors) to enable their customers - who hold their loyalty points - to redeem those points for items including travel and merchandise. To that end, our Loyalty Solutions business enables ...

Financial Performance - Quarterly gross crypto services revenues reached $199.4 million, with associated crypto costs and execution, clearing, and brokerage fees of $197.8 million[2]. - Total revenues for FY23 were $780.1 million, a significant increase from $56.2 million in FY22[24]. - Total revenues for Q4 2023 reached $214.5 million, a significant increase from $15.9 million in Q4 2022, representing a growth of 1,250%[50]. - Crypto services generated $199.4 million in Q4 2023, compared to only $0.3 million in Q4 2022, indicating a substantial increase in demand[50]. - The net loss attributable to Bakkt Holdings, Inc. for FY23 was $74.9 million, an improvement from a net loss of $578.1 million in FY22[50]. - The company reported a net loss of $78.7 million for Q4 2023, an improvement from a net loss of $326.4 million in Q4 2022[38]. - Basic net loss per share for Q4 2023 was $(0.29), an improvement from $(1.23) in Q4 2022[50]. Operating Expenses - Total operating expenses for the quarter were $293.0 million, with operating expenses excluding crypto costs down 55% year-over-year to $27.8 million[2][7]. - Operating expenses decreased to $293.0 million in Q4 2023 from $347.9 million in Q4 2022, reflecting a reduction of approximately 15.8%[50]. - Goodwill and intangible assets impairments were $37.2 million in Q4 2023, down from $274.4 million in Q4 2022, indicating a positive trend[50]. - Goodwill, intangible, and long-lived assets impairments for FY23 were $90.8 million, down 95% from $1,833.6 million in FY22[24]. Future Projections - Full year 2024 revenues are expected to be between $3,292 million and $5,114 million, including gross crypto revenues of $3,239 million to $5,057 million[6]. - Full year 2024 total operating expenses, excluding crypto costs, are projected to be $160 million to $170 million[6]. - The company expects to reduce full year 2024 operating cash flow usage by approximately 70% year-over-year to between $58 million and $72 million[18]. - Free Cash Flow for FY 2024 is projected to be between -$65 million and -$79 million, indicating continued cash outflow[47]. Assets and Liabilities - As of December 31, 2023, total assets increased to $966.9 million from $455.5 million as of December 31, 2022, representing a 112.4% growth[36]. - Total liabilities rose to $831.2 million as of December 31, 2023, compared to $119.4 million as of December 31, 2022, marking a 694.1% increase[36]. - The company’s accumulated deficit increased to $(751.3) million as of December 31, 2023, from $(676.4) million a year earlier[36]. - The total stockholders' equity decreased to $135.7 million as of December 31, 2023, from $336.1 million in the previous year, a decline of 59.6%[36]. Market and Product Development - Crypto-enabled accounts increased to 6.2 million, while transacting accounts decreased by 39% year-over-year to 915,000[7]. - Assets under custody increased by 41% year-over-year to $702 million due to higher coin prices[7]. - The company plans to launch institutional trading services in Q3 2024, enhancing its product offerings[2][19]. - The company plans to continue focusing on new product development and market expansion in the crypto economy[41]. - The company is focusing on expanding its crypto services and improving operational efficiency as part of its future strategy[50].

ALPHARETTA, Ga.--(BUSINESS WIRE)--Bakkt Holdings, Inc. (NYSE: BKKT) today announced that Andy Main has been appointed President and Chief Executive Officer, effective March 26, 2024. He will succeed Gavin Michael, who is stepping down to pursue other opportunities. Michael will serve in an advisory role through March 2025 to assist in the leadership transition and advise the Board and executive team on strategic matters. Andy Main has served on Bakkt’s Board of Directors since its public listing in 2021 an ...

ALPHARETTA, Ga.--(BUSINESS WIRE)--Bakkt Holdings, Inc. (“Bakkt”) (NYSE: BKKT) today announced that the company is available now as a key agent for Unchained’s enterprise collaborative custody product. This collaborative model helps bitcoin holders increase security when safeguarding their assets through the use of a vault secured by multiple institutional key agents. As a part of the network, Bakkt will serve as an institutional signatory for Unchained customers' multi-signature vaults. “ Secure and regula ...

The fundraise comes after dire warnings of insolvency at Wall Street’s once-hot crypto infrastructure play.SOPA Images/LightRocket via Getty ImagesCrypto infrastructure firm Bakkt completed two securities purchase agreements collectively worth $32.4 million on Monday after it warned investors of a cash crunch last month.The first transaction involved the issuance of approximately 35 million shares of Bakkt’s Class A common stock and pre-funded warrants at about 87 cents per share in a registered direct offe ...

ALPHARETTA, Ga.--(BUSINESS WIRE)--Bakkt Holdings, Inc. (“Bakkt”) (NYSE: BKKT) today announced that it has entered into two securities purchase agreements, which relate to: The purchase and sale of 46,136,102 shares of its Class A common stock (or pre-funded warrants to purchase shares of Class A common stock in lieu thereof with an exercise price of $0.0001) and accompanying Class 1 warrants and Class 2 warrants to purchase up to an aggregate of 46,136,102 shares of its Class A common stock in a registere ...

ALPHARETTA, Ga.--(BUSINESS WIRE)--Bakkt Holdings, Inc. (NYSE: BKKT) announced today that it will release its fourth quarter and full year 2023 earnings on Wednesday, March 20, 2024, before market open. Management will host a conference call at 9:00 a.m. ET on the same day to review the results and answer questions. Attendance information is provided below. Investors and analysts interested in participating in the earnings conference call are invited to dial (833) 470-1428 or (404) 975-4839, and reference p ...

Wall Street’s crypto infrastructure darling, Bakkt, has struggled to lock onto a viable product offering, and recently warned stockholders that it might not survive. Another pivot is underway.By Nina Bambysheva, Forbes StaffWhen Bakkt launched in 2018, the markets were ecstatic. “Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, is now in the bitcoin business,” read the MIT Technology Review. Fortune predicted Bakkt would bring bitcoin to your 401(k). The promise was that ownership ...