Bakkt Revenue Surges to $348 Million Despite Falling Trading Volume

The digital asset platform Bakkt has revealed a remarkable surge in its total revenue for the second quarter of this year, reaching $348 million. This represents a significant leap from the $14 million recorded in the same quarter of the previous year, 2022.

A spokesperson for the company clarified that the current quarter’s revenue of $348 million is inclusive of gross revenue, adhering to Generally Accepted Accounting Principles (GAAP), while the $14 million reported last year was based on total revenue on a net basis.

Based in New York City, Bakkt attributed its impressive earnings to the acquisition of Apex Crypto in April. The substantial increase in gross crypto services revenue was primarily fueled by the trading activities of Apex Crypto. The company communicated this in an official earnings statement.

Gavin Michael, the CEO of Bakkt, underlined the significance of acquiring Apex Crypto at the start of the quarter. He stated, “The completion of our acquisition of Apex Crypto marked a pivotal moment for our company. We’ve been able to significantly expand our presence within the crypto ecosystem, achieving strong traction by engaging new clients.”

Apex Crypto has since been rebranded as Bakkt Crypto Solutions. Bakkt further bolstered its client portfolio by bringing invstr, Swan Bitcoin, and Blockchain.com into the fold.

While Bakkt’s traded volume experienced a decline of 51%, amounting to $531 million, the number of transacting accounts also witnessed a 20% drop compared to the previous year. The company attributed these declines in trading to the prevailing “slowdown” within the crypto market.

Nevertheless, Bakkt noted a 3% increase in its assets under custody, which reached $660 million. This growth can be attributed to the elevated values of certain cryptocurrencies, as stated by Bakkt.

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