Bakkt, the struggling U.S.-based crypto trading and custody platform, has appointed Akshay Naheta as its new co-CEO, a move aimed at revitalizing its business.
Naheta, a former SoftBank executive, will lead alongside Andy Main, the company’s current CEO, according to a March 19 press release.
Naheta brings extensive experience in finance and technology, having founded Distributed Technologies Research (DTR), a firm focused on global payment infrastructure.
Bakkt Eyes DTR Tech Integration for Trading and Brokerage Expansion
Bakkt plans to integrate DTR’s technology into its trading and brokerage services, pending regulatory approval.
Main expressed optimism about the appointment, saying it will help Bakkt expand from a crypto technology and liquidity provider into a full-scale institutional trading and payments platform.
During his tenure at SoftBank, Naheta played a key role in the company’s $4 billion investment in Nvidia in 2017, which generated a $3 billion profit.
He was also involved in investments in Arm Holdings, a major semiconductor firm.
Bakkt has struggled since going public in 2021 via a SPAC merger, with its stock price plummeting over 62% this year.
The platform has also lost key clients, including Bank of America and Webull.
These departures pose a significant blow to Bakkt’s revenue stream.
Bank of America accounted for 17% of the company’s loyalty services revenue in the nine months leading up to September 30, 2024.
Meanwhile, Webull contributed a staggering 74% of Bakkt’s crypto services revenue during the same period.
Adding to investor concerns, Bakkt has twice delayed its earnings conference call, rescheduling it for March 19.
The firm, founded in 2018 by Intercontinental Exchange (ICE), which owns a 55% stake and operates the New York Stock Exchange, is facing mounting scrutiny over its financial stability.
Bakkt Faces Potential Class-Action Lawsuit Over Market Turmoil
The recent market turbulence around Bakkt has drawn legal attention as well.
This week, the Law Offices of Howard G. Smith announced a potential class-action lawsuit against Bakkt, alleging violations of federal securities laws.
The lawsuit claims that the loss of key partnerships, combined with the postponed earnings call, contributed to the stock’s steep decline, harming investors.
This is not the first time Bakkt’s stock has seen dramatic fluctuations.
In November 2024, its share price surged over 162% to $29.71 after reports surfaced that Donald Trump’s media company was in advanced discussions to acquire the firm.
Before that, ICE was reportedly considering selling or restructuring Bakkt into smaller entities.
Further complicating Bakkt’s outlook, the NYSE warned the company in March that it had fallen out of compliance with listing requirements after its stock remained below $1 for 30 consecutive trading days.
In November 2023, Bakkt Holdings announced its expansion into both international and domestic markets.
The digital asset marketplace detailed its plans to extend cryptocurrency capabilities across numerous global markets, servicing both existing partnerships and new clients.
Nevertheless, the company still holds valuable regulatory licenses, such as New York’s BitLicense.
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