Shares of Bakkt Holdings have declined following reports indicating the company is exploring strategic options, including a potential sale or division of its operations.

According to sources familiar with the matter cited by Bloomberg on June 7, Bakkt has engaged a financial advisor to evaluate these options. However, no final decisions have been made, and Bakkt may continue operating independently from its parent company.

Initially, the news briefly lifted Bakkt's share price above $24 according to Yahoo Finance data. However, the price swiftly dropped to under $18, marking an 8% decline as of the latest update. Year-to-date, Bakkt's shares have fallen more than 68%.

Financial concerns have been looming earlier this year when Bakkt expressed uncertainty about its ability to sustain operations due to insufficient cash reserves, as disclosed in filings with the US Securities and Exchange Commission (SEC). To address this, Bakkt planned to raise up to $150 million through securities offerings over the next three years. Additionally, a reverse stock split was executed in April to meet NYSE requirements.

Despite financial challenges, Bakkt's crypto business remains resilient. The company reported substantial growth in its crypto-enabled accounts, up 9% year-on-year to 6.3 million. Moreover, the total assets under custody increased to $1.2 billion, bolstered by higher market prices of digital assets.

In an effort to expand its market presence, Bakkt announced a partnership with Crossover Markets for the upcoming launch of BakktX, an institutional crypto trading platform. Andy Main, Bakkt's President and CEO, emphasized:

“BakktX represents a significant milestone in expanding our client base potential and tapping into new market opportunities.”