Bakkt Holdings Is Falling Today. Let’s Talk About That

What is going on?

Crypto asset platform Bakkt (NYSE:BKKT) traded more than 12% lower as of the time of this writing. This occurred after the company reported its most recent earnings results for the last quarter of 2021.

Bakkt reported earnings in a way that many found confusing. It completed its merger with the SPAC (special purpose acquisition company) that took it public during said quarter.

This led to the company showing results in two categories, which were everything prior to and after the acquisition got completed and Bakkt began trading as an independent stock.

When the acquisition closed in October, Bakkt reported a massive $153 million loss. However, the loss included costs related to the acquisition, liabilities, and relevant charges. Net revenue rose 45% from the succeeding quarter, which was $13.7 million.

Bakkt’s total net revenue for 2021 came out to $39.4 million. The company will also “recognize quarterly net losses during 2022” as they invest in ramping up the business.

What comes next?

Bakkt is a bet on crypto adoption for the future. Investors should look at the platform and get to know its abilities. However, a stock trading at more than 22 times their projected revenue guidance for this year is a hard thing to recommend buying for now.