Bakkt’s uncertainty stems from its ambitious plans to expand into new markets. The company has admitted that it cannot guarantee significant revenue growth beyond its historical level, which could hinder its path to sustainable profitability and generating adequate cash flow without additional capital in the near future.
The platform also anticipates operating losses and ongoing debt obligations. If Bakkt depletes its funds through debt or equity arrangements, it may struggle to maintain sufficient liquidity and effectively manage its business.
“Given our limited number of finance and accounting staff and other resources, we are required to develop our own internal controls and procedures that comply with SEC rules. While we will continue to monitor our financial statements, there is no guarantee that we will not identify any material weaknesses in the future,” Bakkt stated.
Founded by InterContinental Exchange (ICE), which owns major derivatives exchanges and the New York Stock Exchange (NYSE), Bakkt went public in 2021. The company’s recent SEC filing led to intensified selling pressure, causing Bakkt shares to plummet by 7.5% to $1.34.
In 2020, Bakkt began testing cryptocurrency-based payments within the Starbucks coffee chain app. In the second quarter of 2023, the platform reported revenue of $348 million, a significant increase compared to $14 million in the same period the previous year.