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Investigation of Bakkt Holdings by Faruqi & Faruqi, LLP

In a recent development that has captured the attention of both investors and the financial community, Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced its exploration of potential claims against Bakkt Holdings, Inc. This investigation stems from significant concerns over the company's financial disclosures and business operations, particularly regarding its reliance on a limited client base for revenue generation.

Background on Bakkt Holdings

Faruqi & Faruqi's investigation comes at a crucial time for Bakkt, known for its digital asset platform designed to facilitate trading in cryptocurrencies and other digital properties. In recent disclosures, Bakkt faced allegations of misrepresentation concerning the stability of its revenue streams, particularly its crypto services, which have shown a troubling dependency on a single contract with Webull, a major client.

Notable Allegations

The crux of the investigation lies in the assertion that Bakkt and its executives may have violated federal securities laws by presenting misleading information. The firm claims that Bakkt's communication to investors failed to accurately reflect the risks associated with its revenue model, especially highlighted by:
1. Misrepresentation of Revenue Sources: The claim that Bakkt’s crypto services were largely stable and diverse was reportedly misleading. It has now been revealed that approximately 74% of its crypto revenue was derived solely from its partnership with Webull, underscoring a significant risk factor that went unmentioned.
2. Dependence on Key Contracts: With the impending termination of the agreement with Webull, effective June 14, 2025, the firm's future revenue outlook appears bleak. This termination has been part of a series of cancellations affecting Bakkt’s contract with other significant clients, including Bank of America, which accounted for a substantial portion of its loyalty services revenue.
3. Market Response: Following the announcement of these client losses, Bakkt's stock price witnessed a dramatic fall, dropping by 27.3%, underscoring investor concerns and prompting the need for investigations regarding the company's practices.

Call to Action for Investors

Faruqi & Faruqi is actively encouraging anyone who has experienced financial losses tied to Bakkt's stock, particularly those who acquired shares between March 25, 2024, and March 17, 2025, to reach out for consultation. The firm emphasizes the importance of participating in this class action, stressing the deadline of June 2, 2025, for investors wishing to seek lead plaintiff status.

How to Get Involved

Investors with relevant information or those who have observed potential misconduct by Bakkt are urged to contact Faruqi & Faruqi directly. This includes current and former employees, shareholders, or anyone privy to insights on Bakkt's operational integrity.

Conclusion

As the investigation into Bakkt Holdings progresses, it serves as a pivotal reminder of the delicate balance between growth in the cryptocurrency sector and the inherent risks tied to transparency and ethical business practices. The outcomes of this class action could not only impact Bakkt’s future but also send strong signals throughout the digital asset industry regarding accountability and investor rights.

For further updates and to learn more about participating in the case, investors can visit Faruqi & Faruqi's official website or contact firm representative Josh Wilson directly at 877-247-4292.

The developments at Bakkt serve as a crucial illustration of the evolving investment landscape, where both potential and pitfalls are intertwined, making vigilance of utmost importance for stakeholders.