Bakkt Soars to $402M Q3 Revenue—Why Did Its Stock Plunge 13% Amid Widening Losses?

Bakkt's Q3 revenue hits $402M—but Wall Street shrugs as warrant charges sink profits deeper into the red.

The crypto custody play posting record revenues... while investors flee

Another quarter, another case study in how traditional finance still doesn't get crypto economics. Bakkt delivered 213% revenue growth year-over-year, yet its stock tanked harder than a leveraged trader during a flash crash.

The warrant-shaped anchor dragging profits down

Those juicy top-line numbers couldn't offset the $31M warrant charge—proof that even institutional crypto plays can't escape legacy finance's baggage. The market reacted like a jilted NFT collector: dumping first, asking questions never.

The bullish case buried in the bloodbath

Buried beneath the accounting noise? Bakkt's custody solutions now secure billions in institutional assets. Because nothing says 'adoption' like Wall Street trusting you with their keys—while shorting your stock.

Bakkt restructures into three main business lines in efforts to revive business

Bakkt reorganized operations under the three Core units below:-

• Bakkt Markets (which handles institutional trading, liquidity, and custody services)
• Bakkt Agent (which focuses on programmable finance tools and stablecoin transactions using AI-driven systems), and;
• Bakkt Global (which manages geographic expansion into new regions and regulatory environments).

The company said each unit is structured to run on its own revenue track, while also supporting activity across the network.

Bakkt also added Richard Galvin to the board. Richard is the executive chairman and CIO of DACM and has a background in global equity, derivatives, and technology investment banking, as well as experience investing in both venture and liquid crypto markets.

Bakkt President and CEO Akshay Naheta said the company took steps in Q3 to simplify operations and strengthen its financial position.

“Our team executed decisively this quarter – collapsing the legacy Up-C structure, unifying the share class, eliminating all debt, and strengthening liquidity through disciplined capital raises,” Akshay said, adding that the changes created “a cleaner balance sheet, improved governance, and stronger institutional eligibility.”

He said the collapse of the Up-C structure was a key milestone because it removed a dual-class system that had limited liquidity and reduced institutional investor access. The company said it raised about $100 million between Q2 and Q3 and paid off all outstanding debt.

It holds more than $120 million in tax loss carryforwards that it expects could offset future taxable income as the business grows. Akshay said he personally purchased about $1.5 million worth of Bakkt shares in August in open market transactions. Shareholders also authorized him to purchase up to $13.4 million more stock through an option plan.

To end the earnings call event, Akshay said, “Bakkt is not a crypto treasury vehicle chasing exposure through dilution.”

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