Cryptocurrency trading firm Bakkt has disclosed its financial outcomes for the year 2023, revealing a surge in revenue to $780 million, an 89% reduction in net losses to $226 million compared to the previous year. The rise in revenue is largely credited to the acquisition of an entity formerly referred to as Bakkt Crypto in April 2023, which greatly enhanced the company’s cryptocurrency service income.
Revenue Climbs as Operating Expenses Mount
Bakkt’s total revenue experienced a dramatic increase from $56 million in 2022 to $780 million in 2023, although this was offset by total operating expenses amounting to $1.008 billion. The firm attributes these expenses to heightened fees related to cryptocurrency services following its strategic acquisition of Bakkt Crypto.
Transaction volumes, nonetheless, saw a 49% year-over-year decline, which Bakkt associates with reduced industry-wide volumes and a dip in user activities on its partner payment application, Webull Pay. Despite this volume contraction, the company is optimistic about its outlook.
Optimistic Revenue Projections Amidst Leadership Changes
Looking ahead to 2024, Bakkt is anticipating a revenue explosion, forecasting a 555% year-over-year growth, with projected revenues potentially reaching $5.114 billion. The company also predicts an increase in cryptocurrency costs, expecting them to correlate with revenue growth. Andy Main, the newly appointed CEO of Bakkt, is prioritizing the efficient expansion of the company’s customer network, diversification of product offerings, and prudent expense management.
Despite these positive developments, Bakkt faces potential risks, including a warning from the New York Stock Exchange about possible delisting due to its share price decline. The company has made executive changes in response, with Andy Main replacing Gavin Michael as CEO, although Michael will remain an advisor until March 2025. According to the last trading session, Bakkt’s shares were trading at $0.54.