Bakkt Holdings reduces management stock option grant ahead of special meeting

Bakkt Holdings, Inc. (NYSE:BKKT), currently valued at approximately $743 million by market capitalization, announced Wednesday that it has amended its proposed management stock option grant, reducing the total number of options to be awarded from 7,450,000 to 2,000,000. The change follows feedback from shareholders and external advisors ahead of a special meeting scheduled for October 31.

According to the company’s press release statement, the amended proposal will be the sole item for shareholder consideration at the special meeting. The options are intended for select members of management, with individual allocations reduced proportionally. If any of these options are forfeited, they may be reallocated to other company service providers under the same terms.

The options were initially granted on July 29, 2025, at an exercise price of $10.00 per share, which was above the closing price of $8.59 on the record date. As of October 21, the closing price of Bakkt’s Class A common stock was $32.14. The aggregate market value of the shares underlying the amended options would be approximately $44.3 million based on this latest price.

The revised plan covers 10 management members, including Chief Executive Officer Akshay Naheta, who would receive 1,342,282 options, and Chief Financial Officer Karen Alexander, who would receive 26,846 options. Other executive officers would receive a total of 1,557,047 options, with 442,953 options allocated to non-executive employees.

The options proposal, if approved, would allow the options to be exercised in eight quarterly tranches. Any unexercised options in a given quarter would be forfeited. Early exercise is permitted, but shares obtained through early exercise would be subject to a lock-up period until the originally scheduled exercise date.

If fully exercised, the new options would represent about 8.0% of the company’s outstanding voting shares, compared to the previously proposed 24.3%. The company noted that the issuance may have a dilutive effect on current shareholders’ ownership and book value per share.

The outcome of the vote will determine whether the options are awarded as described; if not approved, the options will be void. All information is based on the company’s press release statement and SEC filing.

In other recent news, Bakkt Holdings, Inc. has completed the sale of its Loyalty business to Project Labrador Holdco, LLC, a move that signifies a strategic shift towards focusing solely on digital asset infrastructure. This transition allows Bakkt to concentrate on core areas such as Bitcoin, tokenization, digital asset trading, stablecoin payments, and AI-driven finance. Additionally, Benchmark has raised its price target for Bakkt Holdings from $13 to $40, maintaining a Buy rating, following a significant appreciation in the company’s shares.

Bakkt has also appointed Lyn Alden, a macro strategist, to its Board of Directors, enhancing its leadership team. This appointment follows the recent addition of Mike Alfred to the board, which resulted in a 38% surge in the company’s stock. In another development, Bakkt adjourned its special shareholder meeting to October 31 due to insufficient votes on a proposal, allowing more time to gather proxies. These developments indicate Bakkt’s ongoing efforts to strengthen its position in the digital asset space.

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