Bakkt Holdings stock has skyrocketed by over 200% in the previous five days alone. The company went public through an SPAC this October 15, riding the bullish wave in Bitcoin. News about partnerships with giant financial companies also helps to explain why the company had a recent surge.
Reddit investors have noticed the stock too, as the volume of comments about it has gone up. Today, we look at this stock and why it could still be very compelling.
What is Bakkt Holdings and why did it go up?
Bakkt Holdings offers cryptocurrency custody and services. The company’s vision: to enable people to unlock value from their digital assets. The company has said its addressable market is more than $1.6 trillion in digital assets across cryptos, loyalty points, rewards, gift cards, and gaming assets.
On October 15, the firm went public with an initial price of $9.45, and then dropped 8% during the first four trading days. But on the fifth day, the stock went on a huge rally and shot up over 250% to the peak.
On October 25, Bakkt made partnership with Mastercard to offer crypto solutions. The deal was about increasing the adoption of crypto services and allowing the digital ecosystem to grow.
On this same day, Bakkt also announced a partnership with Fiserv to expand their capabilities – like moving money into mobile wallets and allowing practical uses of cryptocurrency and other new assets.
Both of these announcements were likely pivotal in causing BKKT to shoot up so fast.
Is there still opportunity?
According to experts at Allied Market Research, the value of the crypto service market (which is hardware and software that allow the exchange and storage of assets) should go up by around 13% per year through 2030. Demand for more transparency and international remittances in global payments systems are important growth drivers.
We believe that Bakkt might be a “moonshot play” – that is, a high-risk but possibly high-reward bet on the crypto industry that is still being formed today, but that has great growth potential like almost nothing else.
Author: Blake Ambrose