What happened
Shares of the crypto wallet platform Bakkt Holdings (BKKT 6.56%) had fallen nearly 15% as of 11:26 a.m. EST for no obvious reason other than the same volatility that has been associated with the stock since it started trading a few months ago.
So what
Bakkt began trading on the New York Stock Exchange in October. It merged with the special purpose acquisition company VPC Impact Acquisition Holdings earlier this year, which valued the company at around $2.1 billion.
Image source: Getty Images.
Since going public, Bakkt has seen its trading be incredibly volatile, with shares rising to more than $42 before sinking to about $14.60 now. Shares of Bakkt yesterday rose roughly 30% after the company filed amended regulatory documents to correct mistakes made in past financial statements. But the stock gave up a good amount of those gains today.
In November, Bakkt reported a nearly $29 million loss for the third quarter of the year -- an increase on a year-over-year basis mainly due to rising expenses.
Now what
Bakkt believes that it now has an addressable market of 100 million users and revenue is growing, but there is too much volatility right now for me to see this as a buying opportunity just yet. Better business results and stability are needed, especially in these current market conditions.
