Bakkt Holdings under NYSE’s lens for share price listing breach

Bakkt Holdings, Inc. (NYSE: BKKT), a company known for developing solutions that help businesses expand alongside the crypto economy, was warned today by the New York Stock Exchange (the “NYSE”) that it has failed to comply with Section 802.01C of the NYSE Listed Company Manual. As of March 12, 2024, the Company’s Class A Common Stock (also known as the “Common Stock”) had an approximate closing price of less than $1.00 per share for a 30-day trading period.

Bakkt has suffered eight consecutive quarters of net losses since its launch and was warned in early February that it may not have enough funds to operate for the upcoming year. While the recent announcement does not result in Bakkt Holdings’s common stock delisting from the NYSE, the firm must restore compliance by raising its stock prices.

Bakkt Holdings, Inc. has told the NYSE that it expects to stabilize stock prices and take necessary measures to return to compliance with the NYSE’s continuing listing standards. It should be noted that if the company successfully raises the share price by at least $1.00 on the last trading day of any calendar month within the six-month recovery period and can show an approximate share price of at least $1.00 over the 30-day period ending on the final trade day of that month, it can gain back compliance at any time within a six-month period following receipt of the NYSE notice.

Bakkt Holdings, Inc. is currently working to stabilize stock prices artificially, allowing them to return to compliance with the NYSE’s continued listing rules through procedures such as reverse stock splits, commonly known as share rollbacks.

Bakkt Holdings would now be required to cut the number of shares while combining numerous shares without affecting the Company’s overall market value. This is a significant and worthwhile endeavor to pique investors’ interest in their stocks, with further incentives, such as a one-share return to investors who invest in two shares or a one-share return for every five shares investors purchase. The business has six months to make the threshold price of NYSE, and Bakkt is certain that it will “regain compliance at any time” within the stipulated time frame and might use other measures like perceived value, reducing transaction costs, and others to restore its price.