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Investing.com -- Bakkt Holdings, Inc. (NYSE:BKKT) has unexpectedly filed its 10-K report, according to a statement from Ningi Research yesterday. This move comes despite the research firm’s previous prediction that Bakkt would no longer file such reports due to its financial situation and evolving market dynamics.
In the 10-K report, KPMG, Bakkt’s auditor, expressed significant doubt about the company’s ability to meet its obligations for at least 12 months from the date of issuance of the consolidated financial statements. This statement was issued in light of Bakkt’s loss of the Webull contract, a significant blow to the company’s revenue stream.
The loss of the Webull contract, along with similar decisions from other principal partners including Bank of America, is expected to result in Bakkt losing approximately 74% of its revenue derived from cryptocurrency services. This equates to a financial loss of around $1.2 billion. Bakkt has a history of unprofitability that has persisted over the years, which was a key factor in Ningi Research’s bleak outlook for the company’s future and its decision to declare a short position on Bakkt stock.
In a surprising turn of events, Bakkt has expressed an interest in entering the stablecoin market, despite not having a license. The company has partnered with an Abu Dhabi-based fintech firm to pursue this new venture. However, Ningi Research has expressed skepticism about this move, describing it as "smoke and mirrors."
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