Bakkt Jumps 17% as Benchmark Lifts Target, Extending 170% Two-Week Rally
Bakkt Holdings (BKKT) shares jumped 17% on Tuesday, extending a two-week rally that has seen the inventory rise greater than 170%. The surge adopted Benchmark Company’s choice to greater than triple its 12-month worth goal to $40.
It marked the primary time Bakkt crossed the $30 threshold since January, a pointy reversal for a corporation that had struggled under $10 for a lot of the 12 months. Investors are betting {that a} mixture of latest management, treasury enlargement, and streamlined operations can restore credibility to the digital asset platform.
Bakkt Analyst Upgrade Sparks Investor Optimism
Benchmark analyst Mark Palmer described Bakkt as “a beautiful purchase” even after its fast appreciation, citing progress potential throughout crypto custody, stablecoin funds, and treasury administration. He famous that the corporate’s valuation stays modest in comparison with friends such as Coinbase and Robinhood. Founded in 2018 by Intercontinental Exchange, Bakkt supplies crypto custody, buying and selling, and funds infrastructure for establishments and enterprises.
“BKKT stays a beautiful purchase even after its sharp run-up, as it continues to commerce at valuations far under its progress potential and friends,” Palmer mentioned.
Palmer additionally praised the current appointment of veteran investor Mike Alfred to Bakkt’s board, arguing that his expertise in scaling fintech companies will add rigor to strategic selections. The board reshuffle was interpreted by markets as a vote of confidence within the firm’s new path beneath CEO Akshay Naheta, who took cost in August.
According to Yahoo Finance knowledge, Bakkt’s restoration nonetheless leaves it down 97% from its 2021 all-time high above $1,060, underscoring the size of its problem. Yet the rally has drawn consideration from merchants who see parallels with different digital-asset corporations that staged sharp rebounds after extended downturns.
Adding to the bullish tone, Investor’s Business Daily not too long ago lifted Bakkt’s Relative Strength Rating to 96, signaling its worth efficiency over the previous 12 months now ranks among the many high shares out there. It presently sits mid-pack in its specialty finance group, rating under high performers like Riot Platforms and IREN however forward of many smaller friends.
Beyond Price: Streamlining for Core Growth
While the rally is fueled by analyst upgrades, Bakkt has additionally been reshaping its enterprise mannequin. Earlier this 12 months, it offered its loyalty rewards unit for $11 million, a divestiture geared toward narrowing its focus to custody infrastructure and tokenized funds.
To assist an bold new technique, Bakkt is pursuing vital capital elevating. On June 26, 2024, the corporate filed an S-3 registration assertion with the SEC to doubtlessly elevate as much as $1 billion by way of the providing of assorted securities. Crucially, Bakkt’s board not too long ago authorised a revised company funding coverage that allows the corporate to buy Bitcoin and different digital property for its treasury utilizing surplus money or future financing proceeds.
CEO Akshay Naheta emphasised the shift on a current investor name, stating, “Digital property are shifting from speculative to strategic,” and that Bakkt intends to behave as a bridge between establishments and rising monetary rails.
Industry analysts recommend this twin technique—strengthening core providers whereas signaling long-term confidence in Bitcoin—may appeal to institutional companions. However, the S-3 submitting highlighted Bakkt’s ongoing monetary challenges, together with a restricted working historical past and reliance on a single main consumer, underscoring the obstacles of volatility and stiff competitors.
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