Bakkt reports revenue of $780 million with net loss of $226 million in 2023

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By Harper Lee

Bakkt, a cryptocurrency custody and trading platform listed on the NYSE, reported total revenue of $780 million but a net loss of $226 million in 2023, according to its financial report released Monday. Overall, its net loss last year shrank 89% from the full year 2022.

Bakkt explained that its 2023 revenues increased significantly from 2022’s $56 million due to gross revenues from crypto services produced by Bakkt Crypto, formerly Apex Crypto, which it entirely operates. acquired last April. Its operating expenses of $1,008 million reflect increased crypto costs and execution, as well as clearing and brokerage fees related to the acquisition, the company said.

It also saw a 49% year-over-year decrease in notional trading volume, driven by an industry-wide decline in volume and a decrease in user activity on Webull Pay, its partner payment application.

At the same time, the company expects its full-year 2024 revenue to reach $5,114 million, which would represent 555% year-over-year growth. Nonetheless, its full-year crypto costs would increase with revenue, in a range of $3,220 million to $5,027 million.

“Our goal for 2024 is to focus on a set of strategic initiatives that will enable our business to evolve effectively, including expanding our customer network, expanding our product portfolio and prudently managing spending,” said Andy Main, CEO of Bakkt.

NYSE Warning

Earlier this month, the The New York Stock Exchange warned Bakkt that it could be delisted from the stock exchange because the average closing price of its common stock was less than $1.00 per share over a consecutive 30-day trading period. Bakkt closed at $0.54 on Monday, according to Google Finance.

Bakkt has since replaced its CEO to Andy Main from Gavin Michael, who will remain an advisor to the company until March 2025.

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