Key Takeaways
- Donald Trump’s media and tech firm was previously in advanced talks about buying Bakkt.
- Bank of America accounted for 17% of Bakkts’s loyalty services revenues, and Webull represented 74% of its crypto services revenue.
- Bakkt stock has fallen over 25% since the announcement.
After rumors of a potential purchase by Donald Trump’s media and tech group fizzled out, Bakkt is under pressure as two major clients, Bank of America (BoA) and Webull, decline to renew their contracts.
The news sent Bakkt’s stock down over 25%, leaving the cash-strapped crypto firm and its investors bracing for a twice-delayed 2024 earnings call today.
Adding to its troubles, Bakkt may also face a class-action lawsuit over these developments.
Bakkt Under Pressure
According to a recent regulatory filing, Bakkt received a notice from BoA stating it would not renew its commercial agreement, which expires on April 22, 2025. BoA accounted for roughly 17% of the firm’s loyalty services revenue through September 30, 2024.
Webull, a brokerage platform, has also chosen not to renew its agreement, set to end on June 14, 2025. This is a major setback, as Webull contributed 74% of firm’s crypto services revenue during the same period.
These challenges come months after a potential deal with Trump Media and Technology Group (TMTG) fell through.
TMTG was reportedly close to signing an all-stock deal to acquire the crypto firm, boosting BKKT’s price by over 160%.
However, no official confirmation followed, possibly due to Bakkt’s ongoing instability and TMTG’s pivot toward its own crypto-focused fintech venture, Truth.Fi.
Bakkt and TMTG did not immediately respond to a request for comment.
Legal Trouble Looming
Bakkt’s stock (BKKT) plummeted over 35%, from $12.76 to a low of $8.18, following the announcements. It has since recovered slightly but remains down about 27%, trading at $9.33.
The sharp decline, coupled with contract losses and financial report delays, has drawn legal scrutiny.
The Law Offices of Howard G. Smith issued a release suggesting Bakkt’s mismanagement may have violated securities laws, potentially leading to a class-action lawsuit.
The firm’s long-delayed 2024 earnings call is set for today, March 19, 2025, when further developments are expected.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
