Bakkt Slumps 16% After Quarterly Loss Widens to $23.2 Million

Shares of Bakkt Holdings Inc. fell as much as 16% on Monday, after the cryptocurrency trading and technology platform reported a wider loss for the third quarter. The loss was exacerbated by an accounting charge tied to warrants issued to the company’s investors.

The Alpharetta, Georgia-based company reported a loss of $23.2 million, or $1.15 a share, compared with a loss of $56.29 million, or 45 cents, in the year-earlier period. According to a company spokesperson, Bakkt issued warrants - securities that allow shareholders to buy shares at a later date at a specified price - to raise cash in 2024. These warrants were treated as a liability by the company, and due to the increase in Bakkt’s stock price, the warrants became more valuable. While these may have looked like a positive for investors and the stock price increased, the warrants continued to be treated like a liability.