Why Crypto-Related Stock Bakkt Is Falling

Bakkt Holdings Inc BKKT shares are trading lower by 34% to $0.67 during Thursday’s session after the company announced two securities purchase agreements.

In the first agreement, Bakkt will sell 46,136,102 shares of its Class A common stock at $0.8670 per share, along with warrants, in a registered direct offering to institutional investors. This offering is set to close on March 4.

Simultaneously, Bakkt has entered into a concurrent registered direct offering to an affiliate of Intercontinental Exchange, Inc. (ICE). This offering involves the sale of up to 11,534,025 shares of Class A common stock at the same price. A portion of the ICE Offering, consisting of 2,762,009 shares, is subject to shareholder approval and will close concurrently with the Third-Party Offering.

The remaining shares are pending shareholder approval and are expected to close shortly thereafter. Warrants accompanying these shares have an exercise price of $1.0200 per share and expire after five and a half years.

ICE has agreed to support proposals for Bakkt to issue remaining shares and warrants. The aggregate gross proceeds from the offerings are anticipated to be approximately $42.4 million, with additional proceeds expected contingent upon shareholder approval. These funds will primarily be used for working capital and general corporate purposes.

Bakkt operates technology that connects the digital economy by offering a platform for Bitcoin and other crypto and redeeming loyalty points.

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Is BKKT A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Bakkt Hldgs‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Bakkt does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.96%, you'll need to buy a share of NexPoint Real Est Finance by the Mar. 14, 2024. Once done, you can expect to receive a nominal payout of $0.5 on Mar. 28, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Bakkt Hldgs will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, BKKT has a 52-week high of $2.75 and a 52-week low of $0.64.