Concerns over Bakkt’s delisting rise: NYSE deadline approaches as stock falls below $1

The New York Stock Exchange (NYSE) issued a warning to Bakkt, a popular cryptocurrency storage and trading platform, that it may be delisted if its stock price does not consistently exceed $1.

Bakkt’s Struggle and Response

Bakktentered the stock market in October 2021 and suffered a series of setbacks, including consecutive losses and a decline in stock price. Despite efforts to hold on, the stock has consistently closed below $1 over the past 30 days, prompting action from the NYSE.

The platform closed trading at 60 cents on March 13, representing a decline of nearly 42% from its previous value of $1. Bakkt has expressed its intention to rectify the situation and bring itself back into compliance with NYSE standards, even if it considers a reverse stock split as a potential solution.

Bakkt’s Compliance Path

According to Bakkt, there is a six-month grace period to restore stock prices to meet NYSE requirements. The company explained its strategy, citing the possibility of achieving compliance if the stock price reached $1 on the last trading day of each month within a stipulated period.

Bakkt’s parent company and majority shareholder, Intercontinental Exchange (ICE), established the platform in 2018. Bakkt aimed to serve as a hub for institutional cryptocurrency trading, but previously launched retail apps failed to gain traction and were discontinued in 2018. February 2023.

Bakkt’s financial woes have continued since its listing, reporting net losses for eight consecutive quarters. To address its cash flow issues, Bakkt recently received regulatory approval to issue $150 million worth of new shares to strengthen its financial position in a challenging market environment.

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