Bakkt (BKKT) Shares Plummet 40% Tuesday: What's Going On?

Shares of digital asset platform Bakkt Holdings Inc BKKT are trading sharply lower Tuesday, plummeting over 40% after the company announced the pricing of a public offering late Monday. The move aims to raise approximately $75 million in gross proceeds.

What To Know: The offering, priced at $10.00 per share, consists of 6,753,627 shares of its Class A common stock. It also includes pre-funded warrants to purchase up to an additional 746,373 shares.

Such offerings often price shares at a discount to the previous market close, leading to a stock price correction as the market adjusts to the new, lower valuation and the dilution of existing shares.

Bakkt has outlined strategic plans for the new capital. The company intends to use the net proceeds primarily to purchase Bitcoin and other digital assets in accordance with its investment policy. The funds will also be allocated towards general working capital and other corporate purposes.

The deal is being managed by Clear Street LLC and Cohen & Company Capital Markets as joint book-runners. They have been granted a 30-day option to purchase up to an additional 1,125,000 shares. The offering is anticipated to close on or around July 30, subject to customary closing conditions.

Price Action: According to data from Benzinga Pro, BKKT shares are trading lower by 41.5% to $10.04 Tuesday morning. The stock has a 52-week high of $37.21 and a 52-week low of $6.81.

Read Also: Bitcoin, Ethereum Hold Steady As XRP, Dogecoin Slip

How To Buy BKKT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Bakkt’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.