Bakkt shares plummet 35% after losing key clients

Bakkt Holdings, a digital asset platform, experienced a significant drop in its share price, falling by 35% after losing two major clients, Bank of America and Webull.

This loss is substantial, as Bank of America accounted for about 16% of Bakkt's loyalty service revenue, while Webull represented a much larger 74% of its crypto service revenue in 2023.

The agreements with these clients are set to expire soon, with Bank of America's contract ending on April 22 and Webull's on June 14.

This development has raised concerns about Bakkt's future revenue streams and its ability to maintain its market position.

In addition to the loss of these major clients, Bakkt has also delayed the filing of its 2024 annual report with the SEC, further adding to investor uncertainty.

The company's stock price has plummeted to $12.83 in after-hours trading, a stark contrast to its all-time high of $1,063 in October 2021.

Bakkt's challenges highlight the volatility and competitive nature of the digital asset industry.

The company may need to reassess its business strategy to navigate this setback, possibly by expanding its services or forming new partnerships.

The situation is being closely monitored by investors and industry observers alike.

As noted by analysts, the loss of major clients can significantly impact a company's reputation and financial stability, emphasising the need for diversification and strong client relationships in the digital asset sector.

Bakkt's response to this crisis will be crucial in determining its long-term success and sustainability.