Bakkt Faced with the Crypto Industry’s Challenges
Strategic Options Under Consideration
Bakkt, the digital asset marketplace, is reportedly exploring various strategic options amid the crypto industry’s downturn. Sources familiar with the matter revealed to Bloomberg News that Bakkt is contemplating a possible sale or breakup of its platform.
These measures are being considered as the crypto industry grapples with the effects of the 2022 meltdown, which has left some companies reeling. However, Bakkt’s exploration of strategic options also reflects the differing responses within the industry, as evidenced by Robinhood’s recent acquisition of the crypto exchange Bitstamp.
Sustaining Business Amidst Operating Losses
In February, Bakkt filed with the U.S. Securities and Exchange Commission (SEC), expressing concerns about its ability to continue as a “going concern” due to expected operating losses and cash burn. However, the company’s new CEO, Andy Main, assured that a capital raise and cost-saving measures had alleviated those concerns.
Despite these efforts, Bakkt recently laid off 13% of its non-call center staff and announced the departure of its chief accounting officer. This move was part of a broader strategic review aimed at aligning resources with business priorities.
Institutional Investors and Crypto Trading
Bakkt remains optimistic about the role of institutional investors in the cryptocurrency trading market, citing the SEC’s approval of bitcoin exchange-traded funds (ETFs). The company’s first-quarter earnings report showed a 324% increase in crypto trading volume compared to the previous quarter.
Conclusion
Bakkt’s strategic considerations and ongoing efforts to sustain its business amidst operating losses highlight the challenges and opportunities faced by the crypto industry. As the market navigates through the downturn, companies like Bakkt are adapting and exploring new avenues to ensure their long-term viability.
Divya 
Mehek