Crypto exchange Bakkt has tumbled 90% since October debut

[NEW YORK] Shares of digital-asset marketplace Bakkt Holdings have dropped to all-time lows, wiping out about US$10 billion in market value since reaching a record high following the firm's much-touted public market debut in October.

The platform, majority owned by New York Stock Exchange parent Intercontinental Exchange, began trading in October after the close of a US$2.1 billion SPAC deal.

The shares rose as high as US$50.80 shortly thereafter as cryptocurrency prices surged, pushing the exchange's market value to around US$11 billion. Bakkt, which fell as low as US$3.31 on Friday, ended the week at US$3.61.

Bakkt's stock has steadily dropped as losses and roiling markets pushed investors to take cover. The market value sank below US$1 billion this week for the first time.

"While we can't comment on stock movements, we are well-capitalised to execute on the long-term strategy that we shared in our last quarter earnings update - investing in the business to bring on more partners, enhancing our products and capabilities and deepening customer relationships with our partners," Lauren Post, a Bakkt spokesperson, said in an emailed statement.

The Alpharetta, Georgia-based company started focusing on developing Bitcoin futures contracts and custody services for institutional investors when it was founded in 2018 with Kelly Loeffler at the helm. Loeffler left the firm in 2019 to serve as a US senator from Georgia.

Bakkt had momentum at the start. The firm announced partnerships with fintech giant Fiserv Inc. and payments provider Mastercard in a bid to offer more crypto-related services and products. It also partnered with Starbucks and Apple Pay.

Still, Bakkt posted a wider net loss in the third quarter, in part, due to higher expenses to attract users as well as new partners.

BLOOMBERG