TLDR
- Bakkt’s stock plummeted nearly 30% after losing two major clients: Bank of America and Webull
- Bank of America represented 17% of Bakkt’s loyalty services revenue while Webull accounted for 74% of its crypto services revenue
- The commercial agreements will expire on April 22 for Bank of America and June 14 for Webull
- Bakkt has postponed its earnings conference call twice, now scheduled for March 19
- At least one law firm announced a possible class action against Bakkt, alleging federal securities violations
Bakkt Holdings, a cryptocurrency custody firm, saw its stock price crash by over 27% on March 18, 2025, following announcements that two of its largest clients would not be renewing their commercial agreements. The news sent shockwaves through investors as the company faces an uncertain future without these key partnerships.
In a regulatory filing on March 17, Bakkt revealed that Bank of America would not renew its agreement when it expires on April 22. The banking giant represented approximately 17% of Bakkt’s loyalty services revenue in the nine months ending September 30, 2024.
Even more concerning for Bakkt’s future, the filing also disclosed that brokerage platform Webull had decided against renewing its agreement, which will end on June 14. Webull accounted for a massive 74% of the company’s crypto services revenue during the same period.
The double blow caused Bakkt’s share price (BKKT) to tumble dramatically. It closed trading on March 18 down 27.28% at $9.33 per share.
The downward trend continued after trading hours with a further decline of 2.25% to $9.12, according to data from Google Finance. This represents a steep fall from its former highs.
Bakkt’s stock crash
Looking at the bigger picture, Bakkt’s stock has now lost over 96% of its value since reaching an all-time high of $1,063 on October 29, 2021. This decline represents a major reversal for the once-promising crypto firm.
Adding to investor concerns, Bakkt has postponed its previously announced earnings conference call twice. The latest rescheduling sets the call for March 19, creating additional uncertainty in the market.
Bakkt’s troubles haven’t gone unnoticed in the legal community. The Law Offices of Howard G. Smith announced a possible class action lawsuit against the company.
The potential lawsuit alleges federal securities violations. It claims that the terminated agreements with Bank of America and Webull, combined with the rescheduled earnings call, caused Bakkt’s stock price to fall and harmed investors.
The cryptocurrency custody firm was founded in 2018 by the Intercontinental Exchange, which still holds a 55% stake in the company. The Intercontinental Exchange also owns the New York Stock Exchange (NYSE).
This isn’t the first time Bakkt has made headlines in recent months. In November 2024, its share price jumped over 162% to $29.71 after reports claimed Donald Trump’s media company was in advanced talks to acquire the firm.
Prior to that potential acquisition news, Bakkt’s parent company had considered selling it or breaking the firm into smaller entities in June, according to a report from Bloomberg. These moves suggest ongoing strategic challenges.
Regulatory challenges
Bakkt has also faced regulatory challenges. It received a notification from the NYSE in March that it wasn’t in compliance with the stock exchange’s listing rules after its stock spent 30 days closing below $1 on average.
The company has also requested an extension of time to file its 2024 annual report with the SEC. This delay adds another layer of concern for investors already worried about the company’s financial health and future prospects.
Neither Bakkt, Bank of America, nor Webull immediately responded to requests for comment about the situation. The lack of public statements from any of the companies involved has left investors with limited information beyond the regulatory filing.
As Bakkt prepares for its rescheduled earnings call on March 19, investors and market watchers will be paying close attention to how the company plans to address these major client losses and chart a path forward in the competitive cryptocurrency services market.
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