Bakkt Q2 Revenue Jumped By 60% YoY, BKKT Shares Up 7%
- Bakkt revealed that its available cash and liquid assets are worth about $315 million as of June 30, 2022.
Digital asset platform Bakkt Holdings Inc. (BKKT: NYSE), whose majority shareholder is Intercontinental Exchange (ICE), has reported a Q2 2022 revenue of $13.6 million, according to its latest financial report. The amount represents a 60 percent rise in its year-on-year revenue (YoY). The company reported a net loss to $27.6 million in the second quarter. This amount is a 13 percent rise compared to the $31.9 million loss the company recorded in the same quarter last year.
Bakkt Financial Highlights and Forward Looking Statements
Bakkt revealed that its available cash and liquid assets are worth about $315 million as of June 30, 2022. The company’s President and CEO, Gavin Michael, commented that he is proud of Bakkt’s Q2 2022 performance as it showed that the company has been prudent in managing its resources to drip up revenue for the ended quarter.
He added that the company’s use of a compliance-first policy and strong platform enabled it to defy challenging market conditions. Hence, he said that Bakkt would maintain its roadmap and work closely with its partners. Thus, the company can integrate its capabilities to help its partners in the market.
Recently, Bakkt announced a partnership with Visa to provide its solutions to Visa’s expansive network. Also, the company added Sullivan Bank as the latest partner for its crypto capabilities. The partnership will allow Sullivan bank’s retail clients to perform crypto transactions without exiting their current banking environment.
More firms are signing up to use Bakkt’s stable, regulated and secure platform. The report also revealed that Bakkt is discussing with the Mayor of Miami to find ways of helping the state launch its crypto ecosystem.
Bakkt’s discussion with the mayor will focus on several use cases, such as the Bakkt crypto payout. Bakkt completed a reverse merger with VPC impact acquisition holdings (a special purpose acquisition company, SPAC). Then, the company became a publicly traded firm in October 2021.
The company’s updated revenue and cash usage guidance for this year strongly reflects the current macroeconomic conditions. Hence, the crypto platform expects its cash use to drop to 15 and 20 percent in this year’s second half, provided it can manage expenses properly. The platform also predicts that its revenue for the second half of 2022 will range between $57 million and $62 million.
This prediction is an adjustment from the previous guidance range of $60 million to $80 million. The report also shows that Bakkt has adjusted its cash usage projection for the remainder of the year. The firm would no longer use $150 million – $170 million. Instead, it would use between $135 million and $140 million.
Side Notes
According to market data provided by MarketWatch, BKKT shares are down approximately 64% and 58% in the past year and YTD respectively. Almost a similar situation has been recorded in the crypto market. However, the company’s stock market has gained 42%, and 11% in the past month and five days respectively.
Nevertheless, the company has made notable strategic partnerships along the way. Among the partnerships include the one with MasterCard and FinServ. The crypto lending platform, Nexo, also selected Bakkt as one of the custodians for its bitcoin and Ethereum holdings.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
