Bakkt announces 1-for-25 reverse stock split

ALPHARETTA, Ga. - Bakkt Holdings, Inc. (NYSE:BKKT), a digital asset marketplace, has announced a reverse stock split for its Class A and Class V common stock at a ratio of 1-for-25. The reverse split is set to take effect at the close of trading on the New York Stock Exchange on April 26, 2024, with shares expected to begin trading on an adjusted basis from the opening of trading on April 29, 2024.

The company's move aims to increase the per-share price of its Class A common stock to comply with the New York Stock Exchange's continued listing standards. However, Bakkt has indicated that it cannot guarantee the post-split share price will maintain the intended higher value or meet the exchange's minimum price criteria over time.

In conjunction with the reverse split, Bakkt will proportionally adjust its authorized shares of common stock, reducing the total from 1,000,000,000 shares to 40,000,000 shares. The par value and the number of authorized shares of preferred stock will remain unchanged.

Stockholders who would receive fractional shares due to the split will instead receive a cash payout, with the company not expecting the aggregate cash amount for fractional interests to be material. The reverse stock split will also proportionately adjust all outstanding warrants and equity awards, as well as the shares issuable under Bakkt's 2021 Omnibus Incentive Plan.

Equiniti Trust Company, LLC will act as the exchange agent for the reverse stock split. Stockholders with shares in electronic book-entry form or held in brokerage accounts will not need to take any action to receive post-split shares, as adjustments will be made automatically.

This strategic move by Bakkt, detailed in its definitive proxy statement filed with the U.S. Securities and Exchange Commission on April 4, 2024, is part of the company's efforts to bolster its stock market position and maintain its listing on the NYSE. The information in this article is based on a press release statement.

In light of Bakkt Holdings, Inc.'s (NYSE:BKKT) recent announcement of a reverse stock split, a closer look at the company's financial health and market performance through InvestingPro data and tips may offer investors additional context. The reverse stock split is a significant corporate action, and understanding the broader financial landscape of Bakkt can help investors gauge the potential impact of this decision.

InvestingPro data reveals that Bakkt currently holds a market capitalization of $56.55 million USD. The company's price-to-earnings (P/E) ratio stands at -0.47, indicating that it is not currently generating a profit.

Moreover, the adjusted P/E ratio for the last twelve months as of Q4 2023 is -2.76, reinforcing the company's unprofitability during this period. Despite a remarkable revenue growth of 1287.55% in the last twelve months as of Q4 2023, the company has a negative gross profit margin of -9.67%, suggesting that it is not effectively converting its sales into gross profit.

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Among the several InvestingPro Tips available for Bakkt, two particularly stand out in relation to the article:

• Analysts anticipate a sales decline in the current year, which could affect investor sentiment and the future financial stability of the company.
• The stock has experienced significant price volatility, as evidenced by a 70.07% drop in the three-month price total return as of the current date. This volatility may continue to affect the stock's performance post-reverse split.

Investors interested in a deeper analysis can find a total of 13 additional InvestingPro Tips for Bakkt at https://www.investing.com/pro/BKKT. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

The provided insights and tips are crucial for investors who are monitoring Bakkt's strategy to maintain NYSE listing standards and are considering the implications of the reverse stock split on their investment decisions.

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