Core Viewpoint - Bakkt Holdings, Inc. is facing significant challenges due to its heavy reliance on a single client, Webull Pay LLC, which accounted for 74% of its crypto services revenue in the first nine months of 2024, and the recent termination of key partnerships, leading to a projected 73% revenue decline [1][5][14]. Financial Performance - Bakkt reported $1.79 billion in revenue for Q4 2024, marking a 737.9% year-over-year increase, primarily driven by its crypto services unit [4]. - The company experienced a net loss of $40.4 million in Q4 2024, which was an improvement of 48.7% compared to the same quarter last year [6]. - Cash reserves stood at $136.5 million as of June 2024, but were being depleted by a cash burn of $27.54 million in the first half of the year [6][7]. Legal and Settlement Implications - Bakkt has agreed to pay $3 million to affected shareholders as part of a settlement related to the lawsuit, which represents approximately 6.9% of its cash reserves [3][7]. - The probability of reaching a settlement in the investor lawsuit is estimated to be between 46-50%, with potential settlement amounts ranging from $14 million to $20 million based on historical data [10][12][14]. - The expected liability from the litigation could be around $10 million, which would consume over a quarter of Bakkt's cash reserves, exacerbating its financial difficulties [13][14]. Strategic Challenges - The company is undergoing a leadership transition and is attempting to pivot towards stablecoin payments and institutional crypto services amidst ongoing legal challenges [15][16]. - Bakkt's stock price has dropped 27.3% since March 2025, complicating efforts to raise funds and attract new clients [16][19]. - The company faces a critical need to stabilize its revenue base, which is currently almost entirely dependent on crypto services, accounting for 98% of its overall income [8].

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].