Folks who held shares of Bakkt (NYSE:BKKT) in 2021 had some good times and some not-so-good times. One could say that about practically any blockchain-focused asset, but BKKT stock recently really took the wind out of some shareholders’ sails.
It’s not always easy to invest in trustless assets, whether it’s directly through cryptocurrencies like Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) or through a related company like Bakkt.
Still, there are advantages to not having to trust or rely on government entities, central banks, and other controlling parties when moving and using money. When we trust governments with our currency, elevated inflation can be the result.
Cryptocurrency and the blockchain can help businesses and individuals to avoid this and other problems. Bakkt’s digital asset platform is a pivotal part of the modern digital-asset ecosystem — even if the investing community doesn’t appreciate this quite yet.
BKKT Stock at a Glance
Market traders did appreciate Bakkt at one point in time, though. Maybe they were too enthusiastic too soon.
In October of 2021, Bakkt debuted in the public markets via a special purpose acquisition company (SPAC) deal with VPC Impact Acquisition Holdings. The share price ramped quickly from $9 to a stunning high of $50.80. This happened in just a few days’ time, believe it or not.
In hindsight, there’s definitely a lesson to be learned here about buying stocks during a hype phase. The result can be severe capital loss.
BKKT stock’s descent from the peak has undoubtedly shaken some investors out of the trade. In early 2022, the stock fell below $8. To a certain extent, this drawdown may have been correlated with the moves of Bitcoin and other cryptocurrencies. Notably, BTC pulled back 30% from November 2021 to early January 2022.
Therefore, it’s important to keep an eye on crypto prices if you’re planning to trade or invest in BKKT stock.
Bringing Crypto to the Gig Economy
You just never know where you might see cryptocurrency being used next — and oftentimes, you’ll see Bakkt there, too.
Case in point: Bakkt recently announced its first partnership in the gig economy with a food-delivery service called BringMeThat.com.
BringMeThat.com has a wide market presence as it connects independent restaurants and customers in thousands of cities across the U.S. Reportedly, Bakkt will be integrated as a payment option within BringMeThat.com’s web and mobile experiences. This will provide the customers extra flexibility as they’ll be able to pay with cash, participating points, or cryptocurrency that they hold in the Bakkt App. Not only that, but Bakkt will also launch “Earn Crypto to enable drivers working with BringMeThat.com to select crypto as a payment method via Bakkt.”
Banking on Crypto Adoption
So, the vision of both the food-delivery customers and the delivery drivers using cryptocurrency is becoming a reality with Bakkt’s help. And if you think that’s a big deal, get a load of this: Bakkt just recently partnered with New Jersey-based Manasquan Bank, which has total consolidated assets of $2.7 billion.
Through this partnership, Manasquan Bank’s retail clients will be able to buy, sell, and hold cryptocurrency through the bank’s mobile banking app. This will be part of Bakkt’s early adopter program, which is anticipated to launch in the second quarter of 2022. Bakkt’s platform allows banks to provide a plug-and-play crypto buy/sell/hold module. As a result, the clients will have access to multiple cryptocurrencies through a trusted financial institution, Manasquan Bank.
The Takeaway on BKKT Stock
Blockchain-focused Bakkt is reducing reliance on central banks while also collaborating with a trusted bank. Sure, there’s a certain irony in this. Yet, adoption among banks and other businesses will be a crucial step in the mainstreaming of cryptocurrency.
At the same time, not all investors are on board with Bakkt’s big vision for crypto adoption. That not necessarily a problem, though. After all, it means that risk-tolerant investors may now be able to buy BKKT stock at an exceptionally low price.
Bakkt currently gets a grade of “B” in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
