Crypto custody and trading platform Bakkt has received a warning from the New York Stock Exchange (NYSE) regarding its non-compliance with the stock exchange’s listing rules.

According to the NYSE, the platform has not been able to maintain its closing share price above $1 for the past 30 days, hence facing delisting risk.

Bakkt Plans to Resolve the Issue

According to regulations, Bakkt must inform the NYSE if it plans to resolve the issue through an action requiring shareholder approval. If the stock price rises above $1.00 per share and maintains this level for 30 consecutive trading days, the non-compliance will be resolved.

Bakkt has stated that it intends to explore all available options to tackle this issue, including a potential reverse stock split contingent upon shareholder approval.

Meanwhile, Bakkt has reported net losses for eight consecutive quarters. The company cautioned about its financial sustainability in early February, expressing concerns over insufficient cash reserves to sustain operations for the next 12 months.

In a February Securities and Exchange Commission (SEC) filing, Bakkt acknowledged the challenges and uncertainties surrounding its operational viability in the coming year. Hence, the crypto platform obtained regulatory approval on February 14 to offer $150 million in new shares to raise capital to address the financial issue.

Bakkt’s Market Challenges

At launch, the firm positioned itself as a platform catering to institutional clients for crypto transactions, storage, and spending. Initially, it also introduced a retail-facing application. However, the retail app was discontinued in February 2023 due to low adoption amid intense competition from other crypto exchanges.

The companys inaugural CEO, Kelly Loeffler, served as a U.S. senator from Georgia for just one year, from 2020 to 2021.

Bakkts shares closed at $0.5978 on Wednesday, yielding a market capitalization of around $80 million. This figure marks a substantial decrease from October 2021, when the stock was valued at $40 per share.