Bakkt's Rollercoaster Ride: Once-Hot Crypto Firm Struggles to Find Footing After $2B Cash Burn
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Bakkt launched in 2018 as a regulated crypto infrastructure company, promising to bring bitcoin to 401(k)s and enable spending crypto at Starbucks. Its stock skyrocketed after going public in 2021.
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However, Bakkt struggled to find a viable product, pivoting from bitcoin futures to a consumer crypto app and now to institutional crypto services.
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After burning through $2 billion in cash, Bakkt warned recently it might not have enough funds to survive another year. Its stock has plunged from a peak of $43 to under $1.
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Bakkt's latest strategy is "B2B2C", providing white-label crypto trading services to consumer-facing companies. It acquired Apex Crypto and rebranded it as Bakkt Crypto.
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Some see Bakkt as a potential takeover target given its regulatory clearance and low valuation under $250 million. But its future remains highly uncertain.