It seems like Bakkt (NYSE:BKKT) has been losing momentum recently. The company made its public debut in October after a reverse merger with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings. After subsequently climbing to as high as $50 in November, shares of BKKT stock are now trading in the sub-$10 range. Bakkt operates as a digital asset marketplace that allows consumers to buy, sell and hold cryptocurrencies. Additionally, the company’s digital platform allows customers to access loyalty programs and receive rewards in crypto.
However, exciting news has BKKT stock trading higher today. It was announced that Manasquan Bank will be participating in Bakkt’s early adopter program. Manasquan Bank is a mutual community bank based in New Jersey that has total consolidated assets of $2.7 billion. The program will allow the bank’s clients to easily access cryptocurrency through the bank’s mobile application. Additionally, Bakkt’s platform will provide a module that will be accessible in the bank’s app. The early adopter program is slated to launch in Q2 of 2022.
Bakkt’s Chief Revenue Officer, Sheela Zamin, praised the partnership:
“This is an incredible opportunity to provide Manasquan Bank clients with an entry point to adopt cryptocurrency as an additional asset option. It’s clear that cryptocurrency is the center of the Web3 economy, in which consumers can participate in new value creation and exchange with digital assets. Bakkt is proud to roll out new and innovative ways to this burgeoning economy, enabling a path to buy, sell and hold crypto as an extension of the consumer’s relationship with their trusted local bank.”
The Bottom Line on BKKT Stock
As pointed out by InvestorPlace contributor Dana Blankenhorn, “Bakkt needs crypto assets to maintain their value to spur consumer interest. Turning miles into Bitcoin sounds great if Bitcoin’s value is rising. It’s not so great if Bitcoin’s value is falling.”
I agree with Blankenhorn. No rational consumer would want to convert their reward points to crypto if the possibility of losing value was significant. In my opinion, the future potential of Bakkt is permanently bonded to the future performance of Bitcoin (CCC:BTC-USD) and other cryptocurrencies. However, as 2021 as proved, innovation is extremely hard to predict.
In the meantime, Bakkt has formed partnerships with Mastercard (NYSE:MA) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), which lends the company a sense of legitimacy. Investors should watch for any other partnerships with corporations and payment processors as we head into the new year.
On the date of publication, Eddie Pan 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.