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The NYSE-listed cryptocurrency storage and trading platform Bakkt recently published a financial report stating it generated a total revenue of $780 million in 2023 but incurred a net loss of $226 million. Despite the net loss, this represents an 89% decrease compared to the net loss in 2022. The company attributed the increase in revenue to the acquisition of what was previously known as Bakkt Crypto in April 2023, which significantly boosted its gross cryptocurrency service revenues.
Bakkt Forecasts 555% Year-Over-Year Growth for 2024
The revenue, which was $56 million in 2022, rose to $780 million in 2023, accompanied by total operating expenses of $1.008 billion. Bakkt stated that these expenses were primarily due to increased costs of cryptocurrency and associated swap and brokerage fees from the acquisition of Bakkt Crypto.
However, Bakkt reported a 49% year-over-year decrease in nominal transaction volume, attributing it to lower industry-wide volumes and a decrease in user activity on the partner payment app Webull Pay. Despite the decrease, the company maintains optimism for its future prospects.
In its forecast for 2024, Bakkt anticipates a significant increase in revenue, projecting a remarkable 555% year-over-year growth to a range of $5.114 billion. The company also expects cryptocurrency costs to rise in line with revenue, with projected costs ranging between $3.220 billion and $5.027 billion.
Bakkt’s new CEO Andy Main summarized the company’s strategic initiatives for 2024, emphasizing a focus on efficient scaling, including expanding the customer network, broadening the product set, and managing expenses cautiously.
Risks Persist for Bakkt
As known, Main’s appointment as CEO of Bakkt occurred amidst challenges, including the New York Stock Exchange’s (NYSE) final warning regarding the potential delisting of Bakkt due to its stock price falling below $1 per share for 30 consecutive trading days.
In response to the NYSE’s warning, Bakkt changed its CEO, with Andy Main taking over from Gavin Michael. However, Michael will continue to serve as an advisor to the company until March 2025. According to Google Finance, Bakkt’s stock closed the trading day on March 25 at $0.54.
