ALPHARETTA, Ga. - Bakkt Holdings, Inc. (NYSE:BKKT), a digital asset marketplace, shared its financial outcomes for the quarter and full year ending December 31, 2023, noting a substantial rise in total revenues and a strategic reduction in operating expenses. The company's quarterly total revenues hit $214.5 million, while the full year's revenues reached $780.1 million.
The quarterly figures were bolstered by gross crypto services revenues of $199.4 million, although associated costs and fees amounted to $197.8 million. Despite these costs, Bakkt's operational efficiency initiatives have led to a 55% year-over-year decrease in operating expenses, excluding crypto costs and certain impairments, down to $27.8 million.
The company has recently secured $42.4 million from concurrent registered direct offerings, including an investment from Intercontinental Exchange (NYSE:ICE), to enhance its liquidity and strengthen its balance sheet.
This move is part of Bakkt's broader strategy to expand its institutional crypto capabilities, which includes the recent launch of Collaborative Custody and the anticipated introduction of institutional trading services in Q3 2024.
Looking ahead, Bakkt has updated its full year 2024 outlook, projecting total revenues to significantly grow to between $3,292 million and $5,114 million. The company also anticipates a roughly 70% year-over-year reduction in operating cash flow usage, estimating it to be between $58 million and $72 million.
In terms of operational highlights, Bakkt reported a 41% increase in assets under custody, reaching $702 million, attributed to higher coin prices. However, transacting accounts and notional traded volume saw declines due to an industry-wide slowdown in crypto activity.
The company's full year 2024 expectations include a tight alignment of crypto costs with gross crypto revenues, and a continued focus on prudent expense management, forecasting a 13-18% decrease in operating expenses year-over-year.
This financial update is based on a press release statement from Bakkt Holdings, Inc. and reflects the company's efforts to scale its business and achieve profitability in the evolving digital asset landscape.
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