Bakkt – a digital asset management platform – has seen its shares fall since its IPO in October. Trading above $40 on Oct. 29, its stock is now as cheap as $3.96 on the NYSE.
Down Alongside Crypto
According to Google Finance, Bakkt’s stock peaked following its public listing on October 18th. It had tripled its value within a week from $8.76 to $30.60 by the 25th. After about another week, its price surged again on October 31st, touching $42.52.
Bakkt’s listing and subsequent rally coincided with a broader rise in the crypto market in October. Bitcoin surged from $43,000 to $62,000 throughout the month, while altcoins such as Solana and Shiba Inu posted parabolic gains.
Its climb also aligned with the launch of the first US Bitcoin ETF, which started trading on the NYSE just a day later. Like Bakkt, BITO saw overwhelming popularity after going live, drawing in over $500 million dollars in trading volume within an hour.
Yet, as with SOL, SHIB, and BITO, Bakkt has fallen tremendously since then. It is now trading at less than $4, 90% of its all-time high despite multiple high profile partnerships. Faced with a stock market crash, former chairman Adam White left the company earlier this year.
According to Bloomberg, Bakkt spokesperson Lauren Post stated this in an email:
“While we can’t comment on stock movements, we are well-capitalised to execute on the long-term strategy… investing in the business to bring on more partners, enhancing our products and capabilities and deepening customer relationships with our partners.”
Both crypto and stocks have fallen this month, in partial reaction to threats from the Federal Reserve to tighten interest rates in March.
Bakkt’s Partnerships
During its October rally, Bakkt formed partnerships with both Mastercard and Fiserv. The former plans to provide credit and debit cards that facilitate Bitcoin payments, while the latter intends to make crypto more practical for use in other ways.
More recently, Bakkt was selected by Nexo – a cryptocurrency lending platform – to hold some of its Bitcoin and Ethereum holdings.
