Bakkt's Share Price Plummets 30% After Losing Key Clients

Bakkt Holdings, Inc. (BKKT) experienced a significant decline in its share price, tumbling nearly 30% following the announcement that two of its major clients, bank of america and Webull, would not be renewing their commercial agreements. The news, disclosed in a regulatory filing on March 17, 2025, sent shockwaves through the market, with Bakkt's stock closing down over 27% on March 18. The company revealed that Bank of America, which accounted for 17% of Bakkt’s loyalty services revenue in the nine months ending September 30, 2024, would not renew its agreement set to expire on April 22. Similarly, Webull, representing 74% of the company’s crypto services revenue during the same period, decided not to renew its agreement, which ends on June 14.

The impact of these terminations on Bakkt's business is substantial. The loss of these key partnerships is expected to result in a significant top-line revenue loss, severely impacting the company's financial health. This development comes at a time when bakkt has already faced challenges, including a 96% decline from its all-time high of $1063, which it hit on October 29, 2021. The company has also postponed its previously announced earnings conference twice, with the latest rescheduling setting the call for March 19.

Bakkt, founded in 2018 by the Intercontinental Exchange, which holds a 55% stake and also owns the New York Stock Exchange, has been navigating a tumultuous period. The company's share price had previously surged over 162% to $29.71 in November last year, following reports of advanced talks for a potential acquisition by Donald Trump’s media company. However, the recent developments have cast a shadow over the company's future prospects.

The termination of agreements with Bank of America and Webull has raised concerns among investors, leading to a potential class action lawsuit. The Law Offices of Howard G. Smith announced a possible class action against Bakkt, alleging federal securities violations. The lawsuit claims that the terminated agreements, combined with the rescheduled earnings call, caused Bakkt’s stock price to fall, thereby injuring investors. Bakkt, Bank of America, and Webull have not yet responded to requests for comment.

The situation highlights the challenges faced by companies in the crypto custody and services sector, particularly when relying heavily on a few key clients. The loss of major partnerships can have a profound impact on revenue and market perception, as evidenced by Bakkt's recent stock performance. As the company moves forward, it will need to address these setbacks and explore new opportunities to stabilize its business and regain investor confidence.