In a significant shift, Bakkt is focusing on stablecoin infrastructure amid a drastic revenue decline, which plummeted by 77% in the first quarter. The company's revenue fell to $243.6 million, sharply down from $1.07 billion in the same period last year, mainly due to reduced crypto trading volumes.
For the quarter ending March 31, Bakkt reported a net loss of $11.7 million, equating to 41 cents per share, contrasting with a net income of $7.7 million or $1.13 per share a year prior. The decline in revenue was largely offset by crypto-related expenses, which totaled $242 million.
Bakkt maintains a strong cash position with $82.6 million available, bolstered by $69.6 million raised through equity offerings. The company carries no long-term debt and recently concluded its acquisition of Distributed Technologies Research, enhancing its capabilities in stablecoin compliance and AI-driven payments.
Following the earnings report, Bakkt's shares experienced a drop of 9.14% in pre-market trading, falling to $9.00 after closing at $9.92 the previous day.