Crypto Trading Platform Bakkt Faces NYSE Delisting Risk Over Compliance Issues

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 14, 2024 01:24 EDT

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Crypto trading platform Bakkt received a warning from the New York Stock Exchange regarding compliance with stock price requirements, it said Wednesday. Its stock price traded below $1.00 per share for 30 consecutive days as of March 12, triggering the NYSE’s compliance concerns.

“The notice does not result in the immediate delisting of the Common Stock from the NYSE,” Bakkt added.

As of Thursday’s pre-market session, Bakkt’s stock price last traded around $0.59 per share. The stock is down 45% in the last month.

September Deadline to Restore Stock Value

Bakkt notified the NYSE Wednesday that it plans to rectify the stock price issue and meet the required listing standards. The company now has six months to bring its stock price back up to meet the minimum requirement.

Rules state that Bakkt must notify the NYSE if it plans to fix the issue by taking an action requiring shareholder approval. If the stock price promptly rises above $1.00 per share and stays there for 30 consecutive trading days, the non-compliance will be considered resolved.

“The company intends to consider all available alternatives to resolve this issue, including but not limited to a reverse stock split, subject to shareholder approval,” Bakkt said.

Bakkt Issued a Financial Health Warning in February

The development comes after Bakkt issued a warning about its financial health in February.

In a document filed with the SEC, the company highlighted challenges and expressed worry about its operational viability in the upcoming year due to inadequate cash reserves.

“We might not be able to continue as a going concern,” it said. “We have determined that we do not believe that our cash and restricted cash are sufficient to fund our operations for the 12 months following the date of this Amended Form 10-Q.”

Bakkt further added: “We cannot conclude it is probable we will be able to increase revenues substantially beyond levels that we have attained in the past in order to generate sustainable operating profit and sufficient cash flows to continue doing business without raising additional capital in the near future.”