Digital asset platform Bakkt reports $28.8 million net loss in Q3

Bakkt has published its first quarterly financial report as a public company with the digital asset platform recording a $28.8 million net loss for the reporting period ended September 30, 2021.

According to Friday’s financial report, Bakkt’s revenue for Q3 came in at $9.1 million as against $6.6 million recorded in the corresponding period last year. The firm also recorded a loss of $24.1 million in earnings before interest, taxes, depreciation and amortization (EBITDA), almost twice the figures reported in Q3 2020.

The increase in Q3 loss year-on-year is likely due to the significant business expenses undertaken by the company during the period. The report shows $39 million in operating expenses, more than 60% of the outlay on expenditure for the third quarter of 2020.

Bakkt has inked several partnerships with numerous payments, fintech, and crypto companies including Mastercard and Fiserv. These collaborations are reportedly part of the firm’s bid to pivot from being only an institutional Bitcoin futures exchange to a more retail-focused digital asset outfit.

The Intercontinental Exchange-backed firm also began trading on the New York Stock Exchange in October. The firm’s public listing came after a merger with VPC Impact Acquisition Holdings.

“As we move forward, we will invest the proceeds from our recent business combination to activate our partnerships, further deploying our capabilities with consumers, businesses and institutions,” said Bakkt CEO Gavin Michael in a statement.

However, Friday’s report showed only 1.7 million transacting addresses year-to-date. With only one quarter left in the year, this number is significantly lower than the company’s earlier 9 million users by the end of 2021 projection.