ALPHARETTA, Ga. - Bakkt Holdings, Inc. (NYSE: BKKT), a crypto solutions provider, has amended its Form 10-Q for the third quarter ended September 30, 2023, to update its business description and related risk factors. The amendments, filed on Wednesday, reflect changes following the acquisition of Apex Crypto LLC, now Bakkt Crypto Solutions, LLC.
The updated filing includes a new risk factor concerning the company's ability to continue as a going concern for 12 months from the amendment date. The assessment, based on generally accepted accounting principles, does not consider management plans that are not fully implemented or lack a sufficient revenue track record.
Despite the inclusion of the going concern risk, Bakkt's management expressed confidence in the company's future. They reiterated their focus on meeting primary business objectives, serving clients, scaling operations, and moving towards profitability. Further details are expected to be shared in the upcoming quarterly earnings announcement.
Founded in 2018 and headquartered in Alpharetta, Georgia, Bakkt offers institutional-grade custody, trading, and onramp capabilities for crypto, aiming to support sustainable, long-term involvement in the digital asset economy.
Forward-looking statements in the press release indicate Bakkt's anticipation of launching new products and entering new markets, which are expected to contribute to revenue generation. However, these statements involve uncertainties, including Bakkt's ability to raise additional capital, manage growth, adapt to market changes, and navigate extensive government regulation.
The forward-looking statements also acknowledge the challenges Bakkt faces, such as the competitive landscape, technological evolution, and potential economic and business disruptions. The company's ability to maintain its New York Stock Exchange listing and to avoid liability, costly litigation, or reputational harm due to data security issues are among the other risks mentioned.
This news article is based on a press release statement from Bakkt Holdings, Inc.
InvestingPro Insights
As Bakkt Holdings, Inc. (NYSE: BKKT) navigates through its recent acquisition and the related challenges, a closer look at the company's financial health using InvestingPro data reveals a complex picture. The company's market capitalization currently stands at $239.51 million, reflecting the market's valuation of the firm amidst its strategic moves. Notably, the company has experienced a significant revenue growth rate over the last twelve months as of Q3 2023, with a staggering 974.24% increase. However, this growth comes with a caveat, as the gross profit margin for the same period is negative at -15.6%, indicating that despite the surge in revenue, profitability remains elusive.
InvestingPro Tips suggest that Bakkt is quickly burning through cash and has not been profitable over the last twelve months. These insights are particularly relevant as the company's updated filing includes concerns about its ability to continue as a going concern. Investors should note that the stock has also fared poorly over the last month, with significant price volatility, which is echoed by the one-week price total return showing a decline of -36.82%. The stock's performance and financial metrics underscore the importance of closely monitoring Bakkt's upcoming quarterly earnings announcement for any signs of operational scaling and progress toward profitability.
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