Bakkt (BKKT) Plunges 11.96% as Warrant Charge Overshadows $402M Revenue Surge

Bakkt Holdings Inc. (BKKT) plunged 11.96% in pre-market trading on November 11, 2025, following a widened third-quarter loss driven by a non-cash accounting charge tied to warrants issued to investors. The company reported a net loss of $23.2 million, or $1.15 per share, compared to a $6.9 million loss in the prior-year period. The charge, linked to rising stock prices increasing warrant liability, overshadowed a 27% year-over-year revenue surge to $402.2 million. Adjusted EBITDA improved to $28.7 million, reflecting operational gains despite the GAAP loss.

The stock’s sharp decline reflects investor concerns over the warrant-related non-cash drag, which masked underlying revenue and EBITDA strength. Bakkt’s strategic moves—selling its Loyalty business and collapsing its Up-C structure to simplify governance—highlight efforts to streamline operations. However, the $37.2 million warrant liability mark-to-market loss in Q3, driven by elevated stock prices, dominated earnings results. The company also announced Richard Galvin’s appointment to its board, aiming to bolster expertise in digital assets and global markets.

Despite revenue growth and adjusted EBITDA gains, the warrant charge and operating expenses rising 25% year-over-year to $427.5 million signal ongoing financial pressures. Institutional investors have shown mixed activity, with some hedge funds increasing stakes while others reduced holdings. Bakkt’s debt-free balance sheet and $64.4 million in cash provide liquidity, but the stock’s 14% decline since December underscores lingering skepticism about its path to profitability.

Backtest Assumption: A hypothetical strategy tracking Bakkt’s adjusted EBITDA growth and capital structure simplifications could have mitigated some volatility, assuming a focus on operational cash flow rather than warrant-related accounting impacts. However, the non-cash charge’s magnitude would likely have persisted as a drag on GAAP metrics, necessitating a long-term view to align with its digital-asset infrastructure goals.