Digital asset manager Bakkt (NYSE:BKKT) is in freefall today after a recent Securities and Exchange Commission (SEC) filing has investors spooked. BKKT stock is down big today, just two months after its October SPAC debut.
So, what’s causing this slump in Bakkt today?
Bakkt is falling victim to an apparent PIPE (private investment in public equity) selloff. Yesterday, Bakkt filed an S-1 registration statement with the SEC, allowing early investors in the company freedom to sell their stake. Consequently, they did. Bakkt has already shed more than 31% of its share price as investors cool off on the once red-hot stock.
Founded in 2018, Bakkt went public just this past October. A week after its debut, BKKT went as high as $42.52 per share amid sky-high investor interest. However, it seems the party is over. Accounting for today’s losses so far, Bakkt is trending a bit below $10 at the time of writing.
What else do you need to know about Bakkt’s dive today?
BKKT Stock Flounders as Bears Come Out on Top
While the PIPE unlocking is wreaking havoc on shareholder wallets, Bakkt is grasping at straws to put a stop to the decline.
The Georgia-based company is best known for its digital asset exchange platform. Bakkt is the latest crypto exchange making waves after its app launched under the guidance of parent company Intercontinental Exchange.
Unfortunately, since its Oct. 25 peak, it’s been a downhill story for the crypto exchange. Even despite a headline-grabbing integration announcement with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Pay, Bakkt can’t seem to reverse its fortune.
Additionally, just this week Bakkt began offering Wyndham Rewards (NYSE:WH) members the ability to convert reward points into cash deposited directly into their accounts. Unfortunately, it was seemingly to no avail.
Time will tell just how far BKKT will drop. However, for those looking for cheap crypto exposure, a rock-bottom entry point like this could be appealing.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.