Bakkt reports Q3 EPS (45c) vs. ($4.74) last year

Reports Q3 revenue $328.4M vs. $204.8M last year. “Since the U.S. Presidential election, we’ve seen a dramatic increase in trading volumes driven by favorable macro sentiment and rising crypto prices,” said Andy Main, President and CEO of Bakkt (BKKT). “As of November 12th, we had transacted $279 million in volume, already surpassing October’s total of $165 million in just 12 days. These tailwinds align with the upcoming rollout of our institutional trading platform, BakktX, which marks a pivotal turning point for our business. Our combined efforts with Hidden Road, Crossover Markets and CoinRoutes are expected to deliver a powerful combination of Bakkt’s security and compliance expertise with real-time risk management and operational support, high-performance technology, and a first-class trading interface and algorithm that we believe will put us in a strong position to win share in a rapidly growing market. In October, given the considerable margin compression we’ve seen in the custody space, we began investigating a possible wind-down and dissolution of Bakkt Trust due to its lack of market traction and high cost of capital due to regulatory requirements. As this process has progressed, we have also worked to find strategic alternatives for Bakkt Trust. We expect to have a lower regulatory capital requirement during the pendency of this process. This decision allows us to focus on our core business areas, including brokerage and institutional trading services, where we believe we have significant competitive advantages and growth opportunities. We’ve seen significant headwinds thus far in 2024 but looking forward, with the macro landscape improving, BakktX rolling out in the coming months, and broader coin offerings, we believe we are well-positioned to capitalize on high-growth opportunities across the digital asset ecosystem.”