Shares of the Bakkt Holdings, Inc. (BKKT) stock were climbing in the premarket trading session today on January 19, 2022, following the announcement of its partnership with Nexo. BKKT stock price saw a push of 7.44% to reach $5.63 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 6.09% at closing. Let’s deep dive to explore more of it.
What’s Happening with BKKT stock?
BKKT stock became hot among the investors after the company announced that it has partnered with Nexo, a leading regulated digital assets institution. Under this partnership, the company will custody the cryptocurrency assets in the Bakkt Warehouse which is the regulated custodian of the company. Bakkt Warehouse ensures the safe and secure storage of Ethereum and Bitcoin. Previously on December 21, 2021, the Manasquan Bank selected the Bakkt to offer retail clients access to cryptocurrency.
The cryptocurrency market is expanding at a rapid pace and the leading crypto companies are diversifying the custody of their assets. In such circumstances, Bakkt is aiming to diversify its network of operations in order to increase its revenue. Secure custody is the main pillar of the company’s strategy to achieve this goal.
Bakkt Warehouse
Bakkt Warehouse was established in 2019, which consists of both offline and online air-gapped digital asset storage. It reduces the risks owing to warm storage by rebalancing between cold and warm storage tiers. Bakkt is providing further protection to Nexo users through its warm and cold wallets along with multizone physical security which also includes bank-grade vaults.
Financial View of BKKT stock
The company in November announced third quarter 2021 financial results according to which
- The net revenue of Bakkt was $9.1 million in the third quarter of 2021. This represents an increase of 38% as compared to $6.6 million in the same tenure of the previous year. The increase is mainly attributable to high customer loyalty redemptions and large financial institution addition in the company’s loyalty platform.
- The operating expense of the BKKT stock was $39 million, representing a 60% increase as compared to the same quarter of the last year. This increase is attributable to investments for business growth and the closing of the transactions.
- Net loss of the BKKT stock in the last reported quarter was $28.8 million, higher than net loss in the same quarter of last year.
Wrap Up
BKKT stock is getting hype after the announcement of Bakkt’s partnership with Nexo, which is obviously a positive sign for future growth. In the last six months, the stock has lost approximately 47%.
