Bakkt – a digital asset management platform – has seen its shares plummet since going public in October. Trading at over $40 on October 29th, its stock is now as cheap as $3.96 on the NYSE.
Down Alongside Crypto
According to Google Finance, Bakkt’s stock peaked following its public listing on October 18th. It had tripled its value within a week from $8.76 to $30.60 by the 25th. After about another week, its price surged again on October 31st, touching $42.52.
Bakkt’s listing and subsequent rally coincided with a broader rise across the crypto market in October. Bitcoin rose from $43k to $62k throughout the month, while altcoins such as Solana and Shiba Inu saw parabolic gains.
Its climb also aligned with the launch of the first US Bitcoin ETF, which started trading on the NYSE just a day later. Like Bakkt, BITO saw overwhelming popularity after going live, drawing in over $500 million dollars in trading volume within an hour.
Yet as with SOL, SHIB, and BITO, Bakkt has fallen tremendously since then. It is now trading for under $4, 90% off its all-time high despite multiple high-profile partnerships. Faced with crashing stock, former President Adam White departed from the company at the start of the year.
According to Bloomberg, Bakkt spokesperson Lauren Post stated this in an email:
“While we can’t comment on stock movements, we are well-capitalised to execute on the long-term strategy… investing in the business to bring on more partners, enhancing our products and capabilities and deepening customer relationships with our partners.”
Crypto and stocks alike have been down this month, in partial reaction to threats from the Federal Reserve to tighten interest rates this March.
During its October rally, Bakkt formed partnerships with both Mastercard and Fiserv. The former plans to provide credit and debit cards that facilitate Bitcoin payments, while the latter intends to make crypto more practical for use in other ways.
Most recently, Bakkt was selected by Nexo – a cryptocurrency lending platform – to custody a portion of its Bitcoin and Ethereum holdings.