Bakkt at Risk of NYSE Delisting Due to Compliance Concerns

Last updated:

March 14, 2024 01:24 EDT

| 1 min read

The cryptocurrency exchange Bakkt has been notified by the New York Stock Exchange that it has failed to maintain a compliant stock price level, as written in a statement released on Wednesday. As of March 12, Bakkt’s shares were consistently below the $1.00 mark for a period surpassing 30 days, prompting the NYSE to bring the matter to the company’s attention.

“Receipt of this notice does not result in the immediate removal of Bakkt’s Common Stock from the NYSE,” Bakkt further clarified.

In the most recent pre-market session on Thursday, shares of Bakkt were seen trading at approximately $0.59 each. Reflecting a significant decrease, the stock has fallen by 45% in the preceding month.

Deadline in September to Reinstate Stock Standard

Bakkt responded to the NYSE on Wednesday, expressing its intent to correct the stock price situation and achieve the necessary listing criteria. The company is now allowed a six-month period to increase its share price to the required minimum.

According to the rules, Bakkt must inform the NYSE if it is considering taking measures that would need the approval of its stockholders to resolve the issue. If the stock price exceeds $1.00 per share soon and remains there for 30 consecutive trading days, the issue of non-compliance will be considered resolved.

“The company plans to evaluate all possible options to address this concern, which includes but is not restricted to a reverse stock split, pending shareholder approval,” Bakkt disclosed.

A Warning on Financial Health Issued by Bakkt in February

This recent event follows a warning by Bakkt regarding its financial well-being that was issued in February.

In a filing with the SEC, Bakkt showcased a number of obstacles. It communicated apprehension regarding its continuing business activities for the next year due to a shortage of available funds.

“Our ability to operate on a going forward basis is in doubt,” it commented. “We have concluded that our on-hand cash along with restricted cash may not sustain our business operations throughout the 12 months subsequent to the date of this amended report.”

Bakkt also noted it was uncertain of increasing revenues to a significant level that would enable the generation of a stable operating profit and sufficient cash flow to maintain business operations without the need for further capital infusion in the foreseeable future.