The New York Stock Exchange (NYSE) has threatened to delist crypto custody and trading platform Bakkt unless it returns its average closing price to above $1.
In a March 13 press release, Bakkt notified the New York Stock Exchange that the company was not in compliance with the exchange's listing rules because its stock price averaged less than $1 over the past 30 trading days. said.
Bakkt closed March 13 at 60 cents, up 2.8% on the day, but down nearly 42% over the month from more than $1. According to Google Finance, it traded at a high price of over $40 at one point in late October 2021.
Bakkt says it “intends to eliminate deficiencies in its stock price and restore compliance with New York Stock Exchange standards” and, if approved by shareholders, to implement a reverse stock split that would consolidate existing shares to increase the price. He said he would consider it.
They have six months to get back on track, and Bakkt said, “If the stock price is $1 on the last trading day of the calendar month within the six-month healing period, you can regain compliance at any time within that period.” He explained. His average stock price for the 30 business days ending on the last trading day of the month is at least $1. ”
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Intercontinental Exchange (ICE), which owns the NYSE, founded Bakkt in 2018 and is the majority owner of the cryptocurrency company. This cryptocurrency company was listed on the New York Stock Exchange in October 2021.
When Bakkt first launched, it advertised itself as a platform for financial institutions to buy, sell, store, and use cryptocurrencies, and it previously had a retail app, but it has lost a wave of competing crypto exchanges. It did not become popular within the country and was closed in February 2023.
Bakkt has reported eight consecutive quarters of net losses since going public, and warned in early February that it may not have enough cash to continue operating for the next 12 months.
The cryptocurrency platform received regulatory approval on February 14 to issue $150 million in new shares to raise cash.
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