Bakkt receives delisting warning from New York Stock Exchange due to continued sluggish share price

The New York Stock Exchange (NYSE) issued a delisting warning to cryptocurrency custody and trading platform Bakkt after its stock price closed below $1 per share for 30 consecutive trading days. . As of Wednesday's close, Bakkt's share price was US$0.6, with a market value of approximately US$80 million, a significant decline compared to the price of US$40 per share in October 2021. Bakkt stated that they are actively taking measures to stabilize the stock price and increase investor confidence to avoid being forced to delist. The warning also reflects the instability in the cryptocurrency market and investor concerns about cryptocurrency-related companies. Bakkt is currently working hard to find solutions to turn around

The New York Stock Exchange said Bakkt was at risk of delisting due to its failure to maintain a closing share price above $1 in the past 30 days.

Bakkt plans to solve this problem

Bakkt has submitted a notice to the New York Stock Exchange that it plans to resolve the issue of its stock price falling below $1 and return to compliance with the exchange’s listing standards. Companies were given six months to increase their share prices to meet minimum requirements.

According to regulations, Bakkt must immediately notify the New York Stock Exchange once it plans to resolve the issue through measures that require shareholder approval. In addition, if the stock price rises above $1.00 per share for 30 consecutive trading days and remains at this level, any violations will be dealt with promptly.

Bakkt stated that they plan to explore all possible solutions, which may include conducting a reverse stock split, subject to shareholder approval.

Meanwhile, Bakkt has posted eight consecutive quarters of net losses. The company warned about its financial sustainability in early February, acknowledging concerns that its cash reserves would be insufficient to sustain operations over the next 12 months. In a February filing with the U.S. Securities and Exchange Commission (SEC), Bakkt acknowledged the challenges and uncertainties surrounding its operational viability in the year ahead. As a result, the cryptocurrency platform received regulatory approval on February 14 to issue $150 million in new shares to raise funds to address financial issues.

Bakkt’s Market ChallengeChallenge

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, founded Bakkt in 2018 and holds a majority stake in the cryptocurrency company. Bakkt debuted on the New York Stock Exchange in October 2021. At launch, the company positioned itself as a platform serving institutional clients who trade, store and spend cryptocurrencies. Initially, it also introduced customer-facing retail applications. However, the retail application was discontinued in February 2023 due to low adoption amid stiff competition from other cryptocurrency exchanges.

Bakkt’s first CEO Kelly Loeffler served as a Georgia senator for only one year, 2020-2021.

Bakkt’s share price closed at $0.5978 on Wednesday, with a market capitalization of approximately $80 million. This figure marks a significant decrease from October 2021, when the stock was valued at $40 per share.

The above is the detailed content of Bakkt receives delisting warning from New York Stock Exchange due to continued sluggish share price. For more information, please follow other related articles on the PHP Chinese website!