In a recent development, the New York Stock Exchange (NYSE) has warned that crypto custody and trading platform Bakkt may be delisted. The reason for this is that Bakkt does not comply with the exchange’s listing rules, as the average closing price of the stock over the past 30 days has remained below $1. This news was announced by Bakkt itself in a press release on March 13.

Bakkt price below $1

Bakkt’s closing price on March 13 was 60 cents, representing an increase of 2.8% on that day. Despite this, the share price has fallen almost 42% over the month, after previously being above $1. By comparison, the stock was still trading for more than $40 in October 2021, according to data from Google Finance.

In response to the NYSE’s warning, Bakkt has indicated that it has plans to rectify the situation and return to compliance with stock exchange standards. This could be done, among other things, through a reverse stock split, in which existing shares are combined to increase the price per share. However, this move would first have to be approved by shareholders.

Six months to put things right

Bakkt has a period of six months to put things right. The company explains that it can return to compliance “at any time” within this period, as long as it achieves a share price of $1 on the last trading day of a calendar month within the recovery period, and an average share price of at least $1 over the 30 trading days ending on that last day.

Intercontinental Exchange (ICE), the owner of the NYSE and also the founder of Bakkt in 2018, is the majority shareholder of the company. Bakkt listed on the NYSE in October 2021, positioning itself as a platform for institutions to buy, sell, store and issue cryptocurrencies. It once had an app aimed at retail, which closed in February 2023 after failing to take off amid a saturated market of crypto exchanges.

Bakkt has reported eight consecutive quarters of net losses since its listing and warned earlier this year that it may not have enough financial resources to survive the next 12 months. In an effort to improve its financial situation, the company received regulatory approval on February 14 to issue $150 million in new shares.

Source: https://newsbit.nl/nyse-dreigt-crypto-platform-bakkt-van-de-beurs-te-verwijderen/



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