The New York Stock Exchange (NYSE) has notified crypto custody and trading platform Bakkt of its non-compliance with listing rules due to its average closing share price falling below $1 over the past 30-day trading period.
Bakkt’s share price closed at 60 cents on March 13, showing a 2.8% increase for the day but reflecting a significant decline of nearly 42% over the past month from above $1. At its peak in late October 2021, Bakkt traded at over $40.
Bakkt stated its intention to address the stock price deficiency and regain compliance with the NYSE standards. One potential solution under consideration, pending shareholder approval, is a reverse stock split aimed at increasing the share price.
The company has six months to rectify the situation, during which it can regain compliance by achieving a $1 share price on the last trading day of any calendar month within the cure period and maintaining an average share price of at least $1 over the preceding 30 trading days.
Intercontinental Exchange (ICE), the parent company of NYSE, founded Bakkt in 2018 and remains its majority owner. Bakkt went public on the NYSE in October 2021.
Despite its institutional-focused platform for crypto trading and storage, Bakkt has faced operational hurdles, including the closure of its retail-facing app in February 2023. It has reported net losses for eight consecutive quarters since its listing and expressed concerns in early February about its cash position, leading to regulatory approval to offer $150 million in new shares for fundraising purposes.
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