Crypto platform Bakkt faces the risk of delisting from the NYSE due to a share price below $1

The company has six months to raise the value of the securities

14.03.2024 - 10:55

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3 min

What’s new? The New York Stock Exchange (NYSE) has threatened to delist shares of custody and trading cryptocurrency platform Bakkt (BKKT) if the average closing price of the security continues to hold below $1. On March 13, the closing price was 60 cents, adding 2,8% in a day but losing almost 42% in a month. According to Google Finance, BKKT’s value peaked at $42,52 at the end of October 2021.

Press release

What else is known? According to Bakkt’s press release, the NYSE has notified the company that it is not in compliance with the stock exchange’s listing rules, as its closing share price was below $1 for the most recent 30-day trading period. Bakkt said it intends to remedy the non-compliance with NYSE standards: with shareholder approval, it will consider a share consolidation (reverse split) to increase shareholder value.

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Representatives of the company said that the adopted measures will act “until there is further clarity” in the regulation of the crypto industry

The company has six months to fix the problem. It requires that BKKT’s price be $1 on the last calendar day of any month during that period and that its value be at least $1 for the 30 trading days ending on the last trading day of that month.

Intercontinental Exchange (ICE), which owns the NYSE, founded Bakkt in 2018 and is also the majority owner of the crypto firm. Bakkt went public on the NYSE in October 2021.

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The number of securities and the price range have not yet been determined

Bakkt is institutional-focused but previously also had a retail app, which was shut down in February 2023 due to high competition.

Bakkt has reported eight consecutive quarters of net losses since listing and warned in early February that it may not have enough cash to sustain the business for the next 12 months.

On February 14, the company received regulatory approval to issue $150 million in new shares to try to raise cash.

As of March 14, BKKT is trading at $0,5978, having lost 74,34% YTD and 94,57% since listing, according to TradingView.

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