Crypto Firm Bakkt Taps New CEO After Revealing Financial Struggles

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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March 19, 2024 01:25 EDT

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Crypto trading platform Bakkt announced Monday that Andy Main will take over as President and CEO. He will replace Gavin Michael, who is leaving for new opportunities.

Michael will stay on as an advisor until March 2025 to aid in the transition and provide guidance to the Board. Main, who has been on Bakkt’s Board since its public listing in 2021, will take over as CEO starting March 26.

“He is well-versed in the company’s opportunities and understands how to deliver the unique benefits of crypto to Bakkt’s diverse set of clients and partners,” the company said in a statement. Prior to Bakkt, Main was the global CEO of Ogilvy and also served as the global head of Deloitte Digital.

Due to Main’s appointment, Bakkt is moving its fourth-quarter and full-year 2023 financial results to Monday, March 25.

Bakkt Faces NYSE Scrutiny Over Stock Price Compliance

Less than a week ago, Bakkt received a notice from the New York Stock Exchange regarding compliance with stock price regulations. The company’s stock had been trading below $1.00 per share for 30 consecutive days as of March 12. This prompted concerns from the NYSE about non-compliance.

Bakkt informed the NYSE that it would resolve the stock price discrepancy and align with the requisite listing benchmarks. The company has a six-month timeframe within which to elevate its stock price to satisfy the minimum requirement.

Bakkt Attempts to Ease Financial Worries After Cash Reserve Warning

Relatedly, Bakkt issued a warning last month about its financial standing. The company said it was concerned about its operational viability in the upcoming year owing to inadequate cash reserves.

However, Main attempted to alleviate these concerns on Monday. He said he would share strategies aimed at enhancing shareholder value during the upcoming earnings call. He also highlighted a recent capital raise, indicating that the proceeds would contribute to addressing financial challenges.

Additionally, he mentioned plans to reduce cash expenses, particularly through legal entity integration, which has received NYDFS approval. These initiatives, coupled with related cost savings, were cited as efforts to mitigate the conditions that raised doubts about Bakkt’s ability to continue operating successfully.