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While Bakkt faces 90% erosion in its market cap, the company spokesperson confirms that they are well capitalized for their long-term plans.
While cryptocurrency prices have plummeted severely over the last two months, crypto asset management platform Bakkt (NYSE: BKKT) has witnessed a deeper correction in its stock price. Shares of Bakkt Holdings Inc (BKKT) are down by more than 90% since October 2021.
While the BKKT stock was trading above $40 by October end, it was available under $4.0 last week. Back in October, Bakkt’s stock rallied supported by both Wall Street and Satoshi Street bulls. Around this period, most of the cryptocurrencies were trading at their all-time high levels.
During this period, the Bitcoin price surged all the way above $60,000. On the other hand, altcoins such as Solana and Shiba Inu made parabolic gains. However, things later turned upside down for Bakkt as the stock has been on a downfall until now. Besides, at the beginning of the year, former Bakkt President Adam White departed from the company. Commenting on this dismal stock performance, Bakkt spokesperson Lauren Put told Bloomberg:
“While we can’t comment on stock movements, we are well-capitalised to execute on the long-term strategy… investing in the business to bring on more partners, enhancing our products and capabilities and deepening customer relationships with our partners.”
Bakkt and Crypto Companies Shares on a Downtrend
Well, it’s not Bakkt alone who has been facing the brunt of the falling market. If we see, other crypto-linked companies have faced a similar fate. MicroStrategy (NASDAQ: MSTR) holds a massive amount of Bitcoin on its balance sheet has seen its stock moving sideways since November.
Over the last three months, MSTR stock price has corrected by more than 55%, very much in tune with the bitcoin price correction. As of Monday, the MicroStrategy stock was trading at $368.
Crypto exchange Coinbase (NASDAQ: COIN) which debuted on Wall Street last year for more than $325 has seen its price fall more than 40% so far. As of Monday, the Coinbase stock was trading at $190.
Similarly, the world’s largest crypto asset management firm Grayscale (OTCMKTS: GBTC) has seen its stock price eroding more than 50% in the last three months. The GBTC stock has dropped from above $50 and is currently trading at $25.
Thus, we can see that just like cryptocurrencies, stocks linked to companies operating in this space have also shown high volatility.