x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-1550750 | |||||
(State or incorporation or | (I.R.S. Employer Identification No.) | |||||
10000 Avalon Boulevard, Suite 1000 Alpharetta, Georgia | 30009 | |||||
(Address of | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Class A Common Stock, par value $0.0001 per share | BKKT | ||||||||||
Warrants to purchase Class A Common Stock | BKKT WS |
Large accelerated filer | o | Accelerated filer | o | ||||||||
Non-accelerated filer | x | Smaller reporting company | x | ||||||||
Emerging growth company | x |
Page | ||||||||||||
1B. | ||||||||||||
Unresolved Staff Comments | ||||||||||||
Item 1C. | Cybersecurity | |||||||||||
7. | ||||||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||
Supported For | ||||||||||||||||||||||||||
Crypto Asset | Symbol | Trading | Transfers | Rewards | ||||||||||||||||||||||
Bitcoin | BTC | Yes | Yes* | No, planned first half 2024 | ||||||||||||||||||||||
Bitcoin Cash | BCH | Yes | Yes* | No | ||||||||||||||||||||||
Dogecoin | DOGE | Yes* | Yes* | No | ||||||||||||||||||||||
Ethereum | ETH | Yes | Yes* | No | ||||||||||||||||||||||
Ethereum Classic | ETC | Yes* | Yes* | No | ||||||||||||||||||||||
Litecoin | LTC | Yes | Yes* | No | ||||||||||||||||||||||
Shiba Inu | SHIB | Yes* | Yes* | No | ||||||||||||||||||||||
USD Coin | USDC | Yes* | Yes* | No |
Supported for | ||||||||||||||||||||
Crypto Asset | Symbol | Custody | Transfers | |||||||||||||||||
Bitcoin | BTC | Yes | Yes | |||||||||||||||||
Bitcoin Cash | BCH | Yes | Yes | |||||||||||||||||
Dogecoin | DOGE | Yes | Yes | |||||||||||||||||
Ethereum | ETH | Yes | Yes | |||||||||||||||||
Ethereum Classic | ETC | Yes | Yes | |||||||||||||||||
Litecoin | LTC | Yes | Yes | |||||||||||||||||
Shiba Inu | SHIB | Yes | Yes | |||||||||||||||||
USD Coin | USDC | Yes | Yes |
Crypto Asset (Symbol) | Date of Delisting | |||||||
AMP | December 6, 2022 | |||||||
CRO; DASH; ONE; LUNA; LUNC; ZEC | February 15, 2023 | |||||||
ALGO; MANA | April 21, 2023 | |||||||
COMP; GALA; YFI; LRC; ICP; BAT; LINK; APE; MKR; REN; BNT; SNX; ATOM; GRT; AAVE; FIL; XTZ; AVAX; UNI; XLM; CHZ; SUSHI; CRV; ENJ; FTM; SOL; ADA; MATIC | September 19, 2023 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Revenues: | |||||||||||
Crypto services | $ | 726,988 | $ | 1,745 | |||||||
Loyalty services, net | 53,148 | 54,479 | |||||||||
Total revenues | 780,136 | 56,224 | |||||||||
Operating expenses: | |||||||||||
Crypto costs | 718,511 | 1,657 | |||||||||
Execution, clearing and brokerage fees | 3,772 | — | |||||||||
Compensation and benefits | 102,042 | 139,049 | |||||||||
Professional services | 10,382 | 11,483 | |||||||||
Technology and communication | 20,837 | 17,079 | |||||||||
Selling, general and administrative | 33,385 | 35,414 | |||||||||
Acquisition-related expenses | 4,299 | 5,675 | |||||||||
Depreciation and amortization | 13,932 | 25,350 | |||||||||
Related party expenses | 3,902 | 1,168 | |||||||||
Goodwill and intangible assets impairments | 60,499 | 1,822,089 | |||||||||
Impairment of long-lived assets | 30,265 | 11,494 | |||||||||
Restructuring expenses | 4,608 | 2,336 | |||||||||
Other operating expenses | 1,592 | 2,343 | |||||||||
Total operating expenses | 1,008,026 | 2,075,137 | |||||||||
Operating loss | (227,890) | (2,018,913) | |||||||||
Interest income, net | 4,338 | 1,877 | |||||||||
(Loss) gain from change in fair value of warrant liability | (1,571) | 16,638 | |||||||||
Other expense, net | (245) | (856) | |||||||||
Loss before income taxes | (225,368) | (2,001,254) | |||||||||
Income tax (expense) benefit | (444) | 11,320 | |||||||||
Net loss | (225,812) | (1,989,934) | |||||||||
Less: Net loss attributable to noncontrolling interest | (150,958) | (1,411,829) | |||||||||
Net loss attributable to Bakkt Holdings, Inc. | $ | (74,854) | $ | (578,105) | |||||||
Net loss per share attributable to Class A common stockholders: | |||||||||||
Basic | $ | (0.84) | $ | (8.12) | |||||||
Diluted | $ | (0.84) | $ | (8.12) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Crypto services | $ | 726,988 | $ | 1,745 | $ | 725,243 | n/m |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Loyalty services, net | $ | 53,148 | $ | 54,479 | $ | (1,331) | (2.4 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Crypto costs | $ | 718,511 | $ | 1,657 | $ | 716,854 | n/m |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Execution, clearing and brokerage fees | $ | 3,772 | $ | — | $ | 3,772 | n/m |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Compensation and benefits | $ | 102,042 | $ | 139,049 | $ | (37,007) | (26.6 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Professional services | $ | 10,382 | $ | 11,483 | $ | (1,101) | (9.6 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Technology and communication | $ | 20,837 | $ | 17,079 | $ | 3,758 | 22.0 | % |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Selling, general and administrative | $ | 33,385 | $ | 35,414 | $ | (2,029) | (5.7 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Acquisition-related expenses | $ | 4,299 | $ | 5,675 | $ | (1,376) | (24.2 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Depreciation and amortization | $ | 13,932 | $ | 25,350 | $ | (11,418) | (45.0 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Related party expenses | $ | 3,902 | $ | 1,168 | $ | 2,734 | 234.1 | % |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Goodwill and intangible assets impairments | $ | 60,499 | $ | 1,822,089 | $ | (1,761,590) | n/m |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Impairment of long-lived assets | $ | 30,265 | $ | 11,494 | $ | 18,771 | 163.3 | % |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Restructuring expenses | $ | 4,608 | $ | 2,336 | $ | 2,272 | 97.3 | % |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
(Loss) gain from change in fair value of warrant liability | $ | (1,571) | $ | 16,638 | $ | (18,209) | (109.4 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Other expense, net | $ | (245) | $ | (856) | $ | 611 | (71.4 | %) |
($ in thousands) | Year Ended December 31, 2023 | Year Ended December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Income tax (expense) benefit | $ | (444) | $ | 11,320 | $ | (11,764) | (103.9 | %) |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Net cash used in operating activities | $ | (60,697) | $ | (117,597) | |||||||
Net cash provided by (used in) investing activities: | $ | 65,970 | $ | (171,961) | |||||||
Net cash used in financing activities: | $ | (2,634) | $ | (2,584) |
Payments Due by Period | |||||||||||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | |||||||||||||||||||||||||
Purchase obligations(1) | $ | 6,800 | $ | 14,100 | $ | — | $ | — | $ | 20,900 | |||||||||||||||||||
Future minimum operating lease payments(2) | 4,993 | 9,624 | 7,549 | 10,704 | 32,870 | ||||||||||||||||||||||||
Total contractual obligations | 11,793 | 23,724 | 7,549 | 10,704 | 53,770 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Net loss | $ | (225,812) | $ | (1,989,934) | |||||||
Depreciation and amortization | 13,932 | 25,350 | |||||||||
Interest income, net | (4,338) | (1,877) | |||||||||
Income tax expense (benefit) | 444 | (11,320) | |||||||||
EBITDA | (215,774) | (1,977,781) | |||||||||
Acquisition-related expenses | 4,299 | 5,675 | |||||||||
Share-based and unit-based compensation expense | 16,761 | 32,114 | |||||||||
Cancellation of common units | (13) | (185) | |||||||||
Loss (gain) from change in fair value of warrant liability | 1,571 | (16,638) | |||||||||
Goodwill and intangible assets impairments | 60,499 | 1,822,089 | |||||||||
Impairment of long-lived assets | 30,265 | 11,494 | |||||||||
Restructuring expenses | 4,608 | 2,336 | |||||||||
Transition services expense | 3,902 | 1,168 | |||||||||
Adjusted EBITDA loss | $ | (93,882) | $ | (119,728) |
Page | ||||||||
(PCAOB ID: 42) | ||||||||
to 90 |
As of December 31, 2023 | As of December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 52,882 | $ | 98,332 | |||||||
Restricted cash | 31,838 | 16,500 | |||||||||
Customer funds | 32,925 | 591 | |||||||||
Available-for-sale securities | 17,398 | 141,062 | |||||||||
Accounts receivable, net | 29,664 | 25,306 | |||||||||
Prepaid insurance | 13,049 | 22,822 | |||||||||
Safeguarding asset for crypto | 701,556 | 15,792 | |||||||||
Other current assets | 3,332 | 6,060 | |||||||||
Total current assets | 882,644 | 326,465 | |||||||||
Property, equipment and software, net | 60 | 19,744 | |||||||||
Goodwill | 68,001 | 15,852 | |||||||||
Intangible assets, net | 2,900 | 55,833 | |||||||||
Deposits with clearinghouse | 159 | 15,150 | |||||||||
Other assets | 13,103 | 22,458 | |||||||||
Total assets | $ | 966,867 | $ | 455,502 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 55,379 | $ | 66,787 | |||||||
Customer funds payable | 32,925 | 591 | |||||||||
Deferred revenue, current | 4,282 | 3,972 | |||||||||
Due to related party | 3,230 | 1,168 | |||||||||
Safeguarding obligation for crypto | 701,556 | 15,792 | |||||||||
Other current liabilities | 4,702 | 3,819 | |||||||||
Total current liabilities | 802,074 | 92,129 | |||||||||
Deferred revenue, noncurrent | 3,198 | 3,112 | |||||||||
Warrant liability | 2,356 | 785 | |||||||||
Other noncurrent liabilities | 23,525 | 23,402 | |||||||||
Total liabilities | 831,153 | 119,428 | |||||||||
Commitments and contingencies (Note 14) | |||||||||||
Stockholders’ equity: | |||||||||||
Class A common stock ($0.0001 par value, 750,000,000 shares authorized, 94,845,942 shares issued and outstanding as of December 31, 2023 and 80,926,843 shares issued and outstanding as of December 31, 2022) | 9 | 8 | |||||||||
Class V common stock ($0.0001 par value, 250,000,000 shares authorized, 180,001,606 shares issued and outstanding as of December 31, 2023 and 183,482,777 shares issued and outstanding as of December 31, 2022) | 19 | 19 | |||||||||
Additional paid-in capital | 799,656 | 772,973 | |||||||||
Accumulated other comprehensive loss | (101) | (290) | |||||||||
Accumulated deficit | (751,301) | (676,447) | |||||||||
Total stockholders' equity | 48,282 | 96,263 | |||||||||
Noncontrolling interest | 87,432 | 239,811 | |||||||||
Total equity | 135,714 | 336,074 | |||||||||
Total liabilities and stockholders’ equity | $ | 966,867 | $ | 455,502 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Revenues: | |||||||||||
Crypto services | $ | 726,988 | $ | 1,745 | |||||||
Loyalty services, net | 53,148 | 54,479 | |||||||||
Total revenues | 780,136 | 56,224 | |||||||||
Operating expenses: | |||||||||||
Crypto costs (See Note 2) | 718,511 | 1,657 | |||||||||
Execution, clearing and brokerage fees | 3,772 | — | |||||||||
Compensation and benefits | 102,042 | 139,049 | |||||||||
Professional services | 10,382 | 11,483 | |||||||||
Technology and communication | 20,837 | 17,079 | |||||||||
Selling, general and administrative | 33,385 | 35,414 | |||||||||
Acquisition-related expenses | 4,299 | 5,675 | |||||||||
Depreciation and amortization | 13,932 | 25,350 | |||||||||
Related party expenses | 3,902 | 1,168 | |||||||||
Goodwill and intangible assets impairments | 60,499 | 1,822,089 | |||||||||
Impairment of long-lived assets | 30,265 | 11,494 | |||||||||
Restructuring expenses | 4,608 | 2,336 | |||||||||
Other operating expenses | 1,592 | 2,343 | |||||||||
Total operating expenses | 1,008,026 | 2,075,137 | |||||||||
Operating loss | (227,890) | (2,018,913) | |||||||||
Interest income, net | 4,338 | 1,877 | |||||||||
(Loss) gain from change in fair value of warrant liability | (1,571) | 16,638 | |||||||||
Other expense, net | (245) | (856) | |||||||||
Loss before income taxes | (225,368) | (2,001,254) | |||||||||
Income tax (expense) benefit | (444) | 11,320 | |||||||||
Net loss | (225,812) | (1,989,934) | |||||||||
Less: Net loss attributable to noncontrolling interest | (150,958) | (1,411,829) | |||||||||
Net loss attributable to Bakkt Holdings, Inc. | $ | (74,854) | $ | (578,105) | |||||||
Net loss per share attributable to Class A common stockholders: | |||||||||||
Basic | $ | (0.84) | $ | (8.12) | |||||||
Diluted | $ | (0.84) | $ | (8.12) |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Net loss | $ | (225,812) | $ | (1,989,934) | |||||||
Currency translation adjustment, net of tax | 436 | (850) | |||||||||
Unrealized gains on available-for-sale securities, net of tax | 114 | 59 | |||||||||
Comprehensive loss | $ | (225,262) | $ | (1,990,725) | |||||||
Comprehensive loss attributable to noncontrolling interest | (150,597) | (1,412,385) | |||||||||
Comprehensive loss attributable to Bakkt Holdings, Inc. | $ | (74,665) | $ | (578,340) |
Class A Common Stock | Class V Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 57,164,388 | $ | 6 | 206,271,792 | $ | 21 | $ | 566,766 | $ | (98,342) | $ | (55) | $ | 468,396 | $ | 1,825,775 | $ | 2,294,171 | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 31,557 | — | — | 31,557 | — | 31,557 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unit-based compensation | — | — | — | — | — | — | — | — | 3,847 | 3,847 | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture and cancellation of common units | — | — | (313,144) | — | — | — | — | — | (185) | (185) | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of warrants | 221 | — | — | — | 2 | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon vesting of share-based awards, net of tax withholding | 1,286,363 | — | — | — | (2,586) | — | — | (2,586) | — | (2,586) | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class V shares for Class A shares | 22,475,871 | 2 | (22,475,871) | (2) | 177,241 | — | — | 177,241 | (177,241) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase in deferred tax liability from step-up tax basis related to exchanges of Opco common units | — | — | — | — | (7) | — | — | (7) | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | (254) | (254) | (596) | (850) | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | — | — | 19 | 19 | 40 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (578,105) | — | (578,105) | (1,411,829) | (1,989,934) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | 80,926,843 | $ | 8 | 183,482,777 | 19 | $ | 772,973 | $ | (676,447) | $ | (290) | $ | 96,263 | $ | 239,811 | $ | 336,074 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 15,452 | — | — | 15,452 | — | 15,452 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unit-based compensation | — | — | — | — | — | — | — | — | 1,357 | 1,357 | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture and cancellation of common units | — | — | (4,845) | — | — | — | — | — | (13) | (13) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon vesting of share-based awards, net of tax withholding | 4,190,368 | — | — | — | (2,634) | — | — | (2,634) | — | (2,634) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon vesting of participation units, net of tax withholding | 111,794 | — | — | — | 176 | — | — | 176 | — | 176 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with Apex acquisition | 6,140,611 | 1 | — | — | 10,563 | — | — | 10,564 | — | 10,564 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class V shares for Class A shares | 3,476,326 | — | (3,476,326) | — | 3,126 | — | — | 3,126 | (3,126) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | 146 | 146 | 290 | 436 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | — | — | 43 | 43 | 71 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (74,854) | — | (74,854) | (150,958) | (225,812) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | 94,845,942 | $ | 9 | 180,001,606 | 19 | $ | 799,656 | $ | (751,301) | $ | (101) | $ | 48,282 | $ | 87,432 | $ | 135,714 |
Formation and operating costs | $ | 1,006,862 | ||
Loss from operations | (1,006,862 | ) | ||
Other income: | ||||
Interest earned on marketable securities held in Trust Account | 4,193 | |||
Transaction Costs allocable to warrant liabilities | (768,391 | ) | ||
Change in fair value of warrant liabilities | (3,090,130 | ) | ||
Net Loss | $ | (4,861,190 | ) | |
Weighted average shares outstanding of Class A | 13,429,289 | |||
Basic and diluted net income per share, Class A | $ | (0.26 | ) | |
Weighted average shares outstanding of Class B | 5,111,809 | |||
Basic and diluted net loss per share, Class B | $ | (0.26 | ) | |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (225,812) | $ | (1,989,934) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Depreciation and amortization | 13,932 | 25,350 | |||||||||
Change in fair value of contingent consideration liability | (2,952) | — | |||||||||
Non-cash lease expense | 3,058 | 2,679 | |||||||||
Share-based compensation expense | 15,452 | 31,557 | |||||||||
Unit-based compensation expense | 1,309 | 557 | |||||||||
Forfeiture and cancellation of common units | (13) | (185) | |||||||||
Deferred income taxes | — | (11,594) | |||||||||
Impairment of long-lived assets | 30,265 | 11,494 | |||||||||
Goodwill and intangible assets impairments | 60,499 | 1,822,089 | |||||||||
Loss on disposal of assets | 75 | 3,834 | |||||||||
Loss (gain) from change in fair value of warrant liability | 1,571 | (16,638) | |||||||||
Other | 19 | 285 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (10,036) | (7,164) | |||||||||
Prepaid insurance | 9,773 | 9,384 | |||||||||
Deposits with clearinghouse | 14,991 | 1 | |||||||||
Accounts payable and accrued liabilities | (7,985) | 744 | |||||||||
Due to related party | 2,062 | 551 | |||||||||
Deferred revenue | 396 | (2,364) | |||||||||
Operating lease liabilities | (3,029) | 4,150 | |||||||||
Customer funds payable | 32,334 | 40 | |||||||||
Other assets and liabilities | 3,394 | (2,433) | |||||||||
Net cash used in operating activities | (60,697) | (117,597) | |||||||||
Cash flows from investing activities: | |||||||||||
Capitalized internal-use software development costs and other capital expenditures | (9,433) | (30,543) | |||||||||
Purchase of available-for-sale securities | (61,829) | (306,593) | |||||||||
Proceeds from the maturity of available-for-sale securities | 185,765 | 165,175 | |||||||||
Acquisition of Bumped Financial, LLC | (631) | — | |||||||||
Acquisition of Apex Crypto LLC, net of cash acquired | (47,902) | — | |||||||||
Net cash provided by (used in) investing activities: | 65,970 | (171,961) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and retirement of Class A common stock | (2,634) | (2,586) | |||||||||
Proceeds from the exercise of warrants | — | 2 | |||||||||
Net cash used in financing activities: | (2,634) | (2,584) | |||||||||
Effect of exchange rate changes | 436 | (850) | |||||||||
Net increase (decrease) in cash, cash equivalents, deposits, restricted cash and customer funds | 3,075 | (292,992) | |||||||||
Cash, cash equivalents, deposits, restricted cash and customer funds at the beginning of the period | 115,423 | 408,415 | |||||||||
Cash, cash equivalents, deposits, restricted cash and customer funds at the end of the period | $ | 118,498 | $ | 115,423 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for income taxes | $ | 239 | $ | — | |||||||
Non-cash operating lease right-of-use asset acquired | 3,788 | 11,006 | |||||||||
Supplemental disclosure of non-cash investing and financing activity: | |||||||||||
Capitalized internal-use software development costs and other capital expenditures included in accounts payable and accrued liabilities | 478 | 3,900 | |||||||||
Reconciliation of cash, cash equivalents, deposits, restricted cash and customer funds to consolidated balance sheets: | |||||||||||
Cash and cash equivalents | $ | 52,882 | $ | 98,332 | |||||||
Restricted cash | 31,838 | 16,500 | |||||||||
Customer funds | 32,925 | 591 | |||||||||
Deposits (See Note 6) | $ | 853 | $ | — | |||||||
Total cash, cash equivalents, deposits, restricted cash and customer funds | $ | 118,498 | $ | 115,423 |
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid in | Accumulated | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance—July 31, 2020 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | — | — | 5,750,000 | 575 | 24,425 | — | 25,000 | |||||||||||||||||||||
Forfeiture of 565,700 Sponsor shares | — | — | (565,700 | ) | (57 | ) | — | — | ||||||||||||||||||||
Accretion for Class A ordinary shares to redemption amount | — | — | — | — | (24,425 | ) | (24,389,286 | ) | (24,413,711 | ) | ||||||||||||||||||
Ordinary shares subject to possible redemptio n | — | — | — | — | — | — | — | |||||||||||||||||||||
Net loss | — | — | — | — | — | (4,861,190 | ) | (4,861,190 | ) | |||||||||||||||||||
Balance—December 31, 2020 | 0 | $ | 0 | 5,184,300 | $ | 518 | $ | 0 | $ | (29,250,419 | ) | $ | (29,249,901 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net (loss) | $ | (4,861,190 | ) | |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||||
Interest earned on marketable securities held in Trust Account | (4,193 | ) | ||
Formation costs paid by Sponsor in exchange for Founder shares | 6,606 | |||
Change in fair value of warrant liabilities | 3,090,130 | |||
Transaction costs allocable to warrant liabilities | 768,391 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (234,959 | ) | ||
Accrued expenses | 893,415 | |||
Net cash used in operating activities | (341,800 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (207,372,020 | ) | ||
Net cash used in investing activities | (207,372,020 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from sale of Units, net of underwriting discounts paid | 203,224,580 | |||
Proceeds from sale of Private Placements Warrants | 6,147,440 | |||
Repayment of promissory note—related party | (82,729 | ) | ||
Payment of offering costs | (397,793 | ) | ||
Net cash provided by financing activities | 208,891,498 | |||
Net Change in Cash | 1,177,678 | |||
Cash—Beginning | 0 | |||
Cash—Ending | $ | 1,177,678 | ||
Non-Cash Investing and Financing Activities: | ||||
Initial classification of warrant liabilities | $ | 20,960,000 | ||
Deferred underwriting fee payable | $ | 7,258,021 | ||
Payment of offering costs through promissory note | $ | 82,729 | ||
Offering costs paid by Sponsor in exchange for issuance of Founder shares | $ | 18,394 | ||
Offering costs included in accrued offering costs | $ | 2,230 | ||
Forfeiture of Founder Shares | $ | (57 | ) | |
Crypto Asset | Symbol | ||||
Bitcoin | BTC | ||||
Bitcoin Cash | BCH | ||||
Dogecoin | DOGE | ||||
Ethereum | ETH | ||||
Ethereum Classic | ETC | ||||
Litecoin | LTC | ||||
Shiba Inu | SHIB | ||||
USD Coin | USDC |
Balance Sheet as of September 25, 2020 (audited) | As Reported As Previously Restated in 10-K/A Amendment No. 1 | Adjustment | As Restated | |||||||||
Class A ordinary shares subject to possible redemption | $ | 168,557,240 | $ | 31,442,760 | $ | 200,000,000 | ||||||
Class A ordinary shares | $ | 314 | $ | (314 | ) | $ | 0 | |||||
Additional paid-in capital | $ | 7,920,772 | $ | (7,920,772 | ) | $ | 0 | |||||
Accumulated deficit | $ | (2,921,596 | ) | $ | (23,521,674 | ) | $ | (26,443,270 | ) | |||
Total shareholders’ equity (deficit) | $ | 5,000,008 | $ | (31,442,760 | ) | $ | (26,442,752 | ) | ||||
Number of shares subject to redemption | 16,855,724 | 3,144,276 | 20,000,000 | |||||||||
Balance Sheet as of September 30, 2020 (unaudited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 168,446,470 | $ | 31,553,530 | $ | 200,000,000 | ||||||
Class A ordinary shares | $ | 316 | $ | (316 | ) | $ | 0 | |||||
Additional paid-in capital | $ | 8,031,540 | $ | (8,031,540 | ) | $ | 0 | |||||
Accumulated deficit | $ | (3,032,369 | ) | $ | (23,521,674 | ) | $ | (26,554,043 | ) | |||
Total shareholders’ equity (deficit) | $ | 5,000,005 | $ | (31,553,530 | ) | $ | (26,553,825 | ) | ||||
Number of shares subject to redemption | 16,844,647 | 3,155,353 | 20,000,000 | |||||||||
Balance Sheet as of December 31, 2020 (audited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 173,122,110 | $ | 34,249,910 | $ | 207,372,020 | ||||||
Class A ordinary shares | $ | 343 | $ | (343 | ) | $ | 0 | |||||
Additional paid-in capital | $ | 9,860,338 | $ | (9,860,338 | ) | $ | 0 | |||||
Accumulated deficit | $ | (4,861,190 | ) | $ | (24,389,229 | ) | $ | (29,250,419 | ) | |||
Total shareholders’ equity (deficit) | $ | 5,000,009 | $ | (34,249,910 | ) | $ | (29,249,901 | ) | ||||
Number of shares subject to redemption | 17,312,211 | 3,424,991 | 20,737,202 | |||||||||
Statement of Cash Flows for the period from July 31, 2020 (Inception) through September 30, 2020 (unaudited) | ||||||||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 168,557,240 | $ | (168,557,240 | ) | $ | 0 | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (110,770 | ) | $ | (110,770 | ) | $ | 0 | ||||
Statement of Cash Flows for the period from July 31, 2020 (Inception) through December 31, 2020 (audited) | ||||||||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 174,833,010 | $ | (174,833,010 | ) | $ | 0 | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (1,760,900 | ) | $ | 1,760,900 | $ | 0 |
Statement of Operations for the period from July 31, 2020 (Inception) through September 30, 2020 (unaudited) | ||||||||||||
Weighted average shares outstanding, Class A ordinary shares | 20,000,000 | (17,966,102 | ) | 2,033,898 | ||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | 0 | $ | (0.43 | ) | $ | (0.43 | ) | ||||
Weighted average shares outstanding, Class B ordinary shares | 5,184,300 | (184,300 | ) | 5,000,000 | ||||||||
Basic and diluted net loss per share, Class B ordinary shares | $ | (0.58 | ) | $ | 0.15 | $ | (0.43 | ) | ||||
Statement of Operations for the period from July 31, 2020 (Inception) through December 31, 2020 (audited) | ||||||||||||
Weighted average shares outstanding, Class A ordinary shares | 20,737,202 | (7,307,913 | ) | 13,429,289 | ||||||||
Basic and diluted net income per share, Class A ordinary share s | $ | 0 | $ | (0.26 | ) | $ | (0.26 | ) | ||||
Weighted average shares outstanding, Class B ordinary shares | 5,184,300 | (72,491 | ) | 5,111,809 | ||||||||
Basic and diluted net loss per share, Class B ordinary shares | $ | (0.94 | ) | $ | 0.68 | $ | (0.26 | ) |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Internal use software | 3-7 years | 3-7 years | |||||||||
Purchased software | 3 years | 3 years | |||||||||
Assets under finance lease | 2-5 years | 2-5 years | |||||||||
Office, furniture and equipment | 7-10 years | 7-10 years | |||||||||
Leasehold improvements | 7 years | 7 years | |||||||||
Other computer and network equipment | 3 years | 3 years |
Gross proceeds | $ | 207,372,020 | ||
Less: | ||||
Proceeds allocated to Public Warrants | $ | (13,275,495 | ) | |
Class A ordinary shares issuance costs | $ | (11,138,216 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 24,413,711 | ||
Class A ordinary shares subject to possible redemption | $ | 207,372,020 | ||
For The Period From July 31, 2020 (inception) through December 31,2020 | ||||||||
Class A | Class B | |||||||
Basic and diluted net loss per ordinary share: | ||||||||
Numerator: | ||||||||
Allocation of net loss | $ | (3,520,953 | ) | $ | (1,340,237 | ) | ||
Denominator: | ||||||||
Basic and diluted weighted average ordinary shares outstanding | 13,429,289 | 5,111,809 | ||||||
Basic and diluted net loss per ordinary share | $ | (0.26 | ) | $ | (0.25 | ) | ||
Service Type | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||
Transaction revenue(a) | $ | 756,165 | $ | 29,541 | ||||||||||
Subscription and service revenue | 23,971 | 26,683 | ||||||||||||
Total revenue | $ | 780,136 | $ | 56,224 |
Platform | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||
Loyalty redemption platform | 53,148 | 54,479 | ||||||||||||
Crypto services(b) | 726,988 | 1,745 | ||||||||||||
Total revenue | $ | 780,136 | $ | 56,224 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Beginning of the period contract liability | $ | 7,084 | $ | 9,448 | |||||||
Revenue recognized from contract liabilities included in the beginning balance | (4,045) | (4,739) | |||||||||
Increases due to cash received, net of amounts recognized in revenue during the period | 4,441 | 2,375 | |||||||||
End of the period contract liability | $ | 7,480 | $ | 7,084 |
($ in millions) | ||||||||
Cash consideration paid | 55.0 | |||||||
Cash paid for working capital and cash | 11.8 | |||||||
Class A common stock at transaction close | 10.5 | |||||||
Estimated fair value of Class A common stock contingent consideration | 2.9 | |||||||
Total consideration | $ | 80.2 | ||||||
Current assets | 31.8 | |||||||
Safeguarding asset for crypto | 689.3 | |||||||
Non-current assets | 0.3 | |||||||
Intangible assets - developed technology | 5.6 | |||||||
Intangible assets - customer relationships | 10.2 | |||||||
Goodwill | 52.0 | |||||||
Current liabilities | (19.7) | |||||||
Safeguarding obligation for crypto | (689.3) | |||||||
Net assets acquired | $ | 80.2 |
Balance as of December 31, 2022 | 15,852 | ||||
Apex acquisition | 52,149 | ||||
Impairment | — | ||||
Balance as of December 31, 2023 | $ | 68,001 |
December 31, 2023 | |||||||||||||||||||||||||||||
Weighted Average Useful Life (in years) | Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||||||||||||||
Licenses | Indefinite | $ | 611 | $ | — | $ | (611) | $ | — | ||||||||||||||||||||
Trademarks / trade names | Indefinite | 8,000 | — | (5,100) | 2,900 | ||||||||||||||||||||||||
Technology | 5 | 18,360 | (6,234) | (12,126) | — | ||||||||||||||||||||||||
Customer relationships | 8.4 | 55,170 | (12,508) | (42,662) | — | ||||||||||||||||||||||||
Total | $ | 82,141 | $ | (18,742) | $ | (60,499) | $ | 2,900 |
December 31, 2022 | |||||||||||||||||||||||||||||
Weighted Average Useful Life (in years) | Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||||||||||||||
Licenses | Indefinite | $ | 241,320 | $ | — | $ | (241,320) | $ | — | ||||||||||||||||||||
Trademarks / trade names | Indefinite | 39,470 | — | (31,470) | 8,000 | ||||||||||||||||||||||||
Technology | 4.2 | 67,310 | (19,605) | (38,035) | 9,670 | ||||||||||||||||||||||||
Customer relationships | 8 | 44,970 | (6,807) | — | 38,163 | ||||||||||||||||||||||||
Total | $ | 393,070 | $ | (26,412) | $ | (310,825) | $ | 55,833 |
December 31, 2023 | December 31, 2022 | ||||||||||
Trade accounts receivable | $ | 14,987 | $ | 16,284 | |||||||
Customers, clients and liquidity providers | 4,121 | — | |||||||||
Unbilled receivables | 6,125 | — | |||||||||
Deposits | 939 | 6,445 | |||||||||
Other receivables | 4,223 | 2,787 | |||||||||
Total accounts receivable | 30,395 | 25,516 | |||||||||
Less: Allowance for doubtful accounts | (731) | (210) | |||||||||
Total | $ | 29,664 | $ | 25,306 |
December 31, 2023 | December 31, 2022 | ||||||||||
Prepaid expenses | $ | 3,307 | $ | 6,060 | |||||||
Other | 25 | — | |||||||||
Total | $ | 3,332 | $ | 6,060 |
December 31, 2023 | December 31, 2022 | ||||||||||
Internal-use software | $ | — | $ | 4,383 | |||||||
Purchased software | — | 99 | |||||||||
Office furniture and equipment | — | 2,303 | |||||||||
Other computer and network equipment | 800 | 4,732 | |||||||||
Leasehold improvements | — | 10,102 | |||||||||
Property, equipment and software, gross | 800 | 21,619 | |||||||||
Less: accumulated amortization and depreciation. | (740) | (1,875) | |||||||||
Total | $ | 60 | $ | 19,744 |
December 31, 2023 | December 31, 2022 | ||||||||||
Operating lease right-of-use assets | $ | 11,456 | $ | 19,632 | |||||||
Other | 1,647 | 2,826 | |||||||||
Total | $ | 13,103 | $ | 22,458 |
December 31, 2023 | December 31, 2022 | ||||||||||
Accounts payable | $ | 14,925 | $ | 25,975 | |||||||
Payables to clients and customers | 4,906 | — | |||||||||
Accrued expenses | 15,970 | 15,537 | |||||||||
Purchasing card payable | 11,830 | 10,686 | |||||||||
Salaries and benefits payable | 4,442 | 13,926 | |||||||||
Loyalty revenue share liability | 2,686 | 43 | |||||||||
Other | 620 | 620 | |||||||||
Total | $ | 55,379 | $ | 66,787 |
December 31, 2023 | December 31, 2022 | ||||||||||
Participation units liability, current | $ | — | $ | 275 | |||||||
Current maturities of operating lease liability | 3,636 | 3,014 | |||||||||
Other | 1,066 | 530 | |||||||||
Total | $ | 4,702 | $ | 3,819 |
December 31, 2023 | December 31, 2022 | ||||||||||
Operating lease liability, noncurrent | $ | 23,525 | $ | 23,402 | |||||||
Total | $ | 23,525 | $ | 23,402 |
December 31, 2023 | December 31, 2022 | ||||||||||||||||
Opco Common Units | Ownership % | Opco Common Units | Ownership % | ||||||||||||||
Opco common units held by Bakkt Holdings, Inc. | 94,845,942 | 35 | % | 80,926,843 | 31 | % | |||||||||||
Opco common units held by noncontrolling interest holders | 180,001,606 | 65 | % | 183,482,777 | 69 | % | |||||||||||
Total Opco common units outstanding | 274,847,548 | 100 | % | 264,409,620 | 100 | % |
Dividend yield | — | % | |||
Risk-free interest rate | 0.41 | % | |||
Expected volatility | 45.00 | % | |||
Expected term (years) | 3.06 |
RSUs and PSUs | Number of Shares | Weighted Average Remaining Contractual Term (years) | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||||||||||
Outstanding as of December 31, 2021 | 2,142 | 1.51 | $ | 9.18 | |||||||||||||||||||
Granted | 15,369 | $ | 3.94 | $ | 60,583 | ||||||||||||||||||
Forfeited | (1,885) | $ | 4.99 | ||||||||||||||||||||
Vested | (1,844) | $ | 8.20 | ||||||||||||||||||||
Outstanding as of December 31, 2022 | 13,782 | 2.05 | $ | 4.05 | |||||||||||||||||||
Granted | 8,457 | $ | 1.49 | $ | 12,596 | ||||||||||||||||||
Forfeited | (3,803) | $ | 2.83 | ||||||||||||||||||||
Vested | (5,397) | $ | 3.82 | ||||||||||||||||||||
Outstanding as of December 31, 2023 | 13,039 | 1.38 | $ | 2.79 |
Type of unit | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||
Common incentive unit | $ | 1,345 | $ | 3,663 | |||||||
Participation unit | (49) | (3,291) | |||||||||
Total | $ | 1,296 | $ | 372 |
Incentive Units | Number of Incentive Units | Weighted Average Remaining Contractual Term (years) | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||
Outstanding as of December 31, 2021 | 16,339 | 1.79 | $ | 6.30 | $ | 133,240 | ||||||||
Granted | — | |||||||||||||
Forfeited | (313) | |||||||||||||
Exchanged | (7,732) | |||||||||||||
Outstanding as of December 31, 2022 | 8,294 | 0.79 | $ | 6.30 | $ | 67,635 | ||||||||
Granted | — | |||||||||||||
Forfeited | (5) | |||||||||||||
Exchanged | (568) | |||||||||||||
Outstanding as of December 31, 2023 | 7,721 | 0 | $ | 6.67 | $ | 51,467 |
Dividend yield | —% | ||||
Risk-free interest rate | 0.06% - 0.36% | ||||
Expected volatility | 51.00% - 53.00% | ||||
Expected term (years) | 0.50 - 2.00 | ||||
Discount for lack of marketability | 0.082 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Net loss per share: | |||||||||||
Numerator – basic and diluted: | |||||||||||
Net loss | $ | (225,812) | $ | (1,989,934) | |||||||
Less: Net loss attributable to noncontrolling interest | (150,958) | (1,411,829) | |||||||||
Net loss attributable to Bakkt Holdings, Inc. – basic | $ | (74,854) | $ | (578,105) | |||||||
Net loss and tax effect attributable to noncontrolling interests | $ | — | $ | — | |||||||
Net loss attributable to Bakkt Holdings, Inc. – diluted | $ | (74,854) | $ | (578,105) | |||||||
Denominator – basic and diluted: | |||||||||||
Weighted average shares outstanding – basic | 89,083,329 | 71,167,992 | |||||||||
Weighted average shares outstanding – diluted | 89,083,329 | 71,167,992 | |||||||||
Net loss per share – basic | $ | (0.84) | $ | (8.12) | |||||||
Net loss per share – diluted | $ | (0.84) | $ | (8.12) |
As of December 31, 2023 | As of December 31, 2022 | ||||||||||
RSUs and PSUs | 12,645 | 13,782 | |||||||||
Public warrants | 7,141 | 7,141 | |||||||||
Opco warrants | 793 | 793 | |||||||||
Opco unvested incentive units | — | 2,242 | |||||||||
Opco common units | 180,002 | 181,241 | |||||||||
Total | 200,581 | 205,199 |
Payments Due by Period | |||||||||||||||||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | |||||||||||||||||||||||||
Purchase obligations | $ | 6,800 | $ | 14,100 | $ | — | $ | — | $ | 20,900 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Domestic | $ | (225,691) | $ | (2,001,449) | |||||||
Foreign | 323 | 195 | |||||||||
Total loss before provision for income taxes | $ | (225,368) | $ | (2,001,254) |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Current: | |||||||||||
Foreign | $ | 86 | $ | 68 | |||||||
Federal | — | — | |||||||||
State | 358 | 184 | |||||||||
Total current income tax expense (benefit) | 444 | 252 | |||||||||
Deferred: | |||||||||||
Foreign | — | — | |||||||||
Federal | — | (9,390) | |||||||||
State | — | (2,182) | |||||||||
Total deferred income tax expense (benefit) | — | (11,572) | |||||||||
Total income tax expense (benefit) | $ | 444 | $ | (11,320) |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Tax provision at federal statutory rate | $ | (48,212) | $ | (420,304) | |||||||
Increase (decrease) in income tax resulting from: | |||||||||||
State income taxes, net of federal tax effect | 142 | (34,316) | |||||||||
Noncontrolling interest | 32,287 | 296,122 | |||||||||
Fair value of warrant liability | 329 | (3,494) | |||||||||
Changes in valuation allowance | 11,461 | 145,701 | |||||||||
Stock compensation | 2,180 | 3,862 | |||||||||
Subsidiary liquidation | 1,978 | — | |||||||||
Other | 279 | 1,109 | |||||||||
Provision for (benefit from) income taxes | $ | 444 | $ | (11,320) | |||||||
Effective tax rate | (0.19) | % | 0.57 | % |
December 31, 2023 | December 31, 2022 | ||||||||||
Deferred tax assets: | |||||||||||
Investment in partnership | $ | 114,641 | $ | 111,046 | |||||||
Net operating loss carryforwards | 23,860 | 14,656 | |||||||||
Deferred and share-based compensation | 2,360 | 2,965 | |||||||||
Other | — | 52 | |||||||||
Total deferred tax assets | 140,861 | 128,719 | |||||||||
Less: valuation allowance | (139,331) | (126,039) | |||||||||
Net deferred tax assets | 1,530 | 2,680 | |||||||||
Deferred tax liabilities: | |||||||||||
Intercompany asset with Opco | 1,530 | 2,680 | |||||||||
Total deferred tax liabilities | 1,530 | 2,680 | |||||||||
Net deferred tax liabilities | $ | — | $ | — |
As of December 31, 2023 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
U.S. Treasury debt securities | $ | 17,398 | $ | 17,398 | $ | — | $ | — | ||||||
Safeguarding asset for crypto | 701,556 | — | 701,556 | — | ||||||||||
Total assets | $ | 718,954 | $ | 17,398 | $ | 701,556 | $ | — | ||||||
Liabilities: | ||||||||||||||
Safeguarding obligation for crypto | $ | 701,556 | $ | — | $ | 701,556 | $ | — | ||||||
Warrant liability—public warrants | 2,356 | 2,356 | — | — | ||||||||||
Total liabilities | $ | 703,912 | $ | 2,356 | $ | 701,556 | $ | — |
As of December 31, 2022 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
U.S. Treasury debt securities | $ | 141,062 | $ | 141,062 | $ | — | $ | — | ||||||
Safeguarding asset for crypto | 15,792 | — | 15,792 | — | ||||||||||
Total assets | $ | 156,854 | $ | 141,062 | $ | 15,792 | $ | — | ||||||
Liabilities: | ||||||||||||||
Safeguarding obligation for crypto | $ | 15,792 | $ | — | $ | 15,792 | $ | — | ||||||
Warrant liability—public warrants | 785 | 785 | — | — | ||||||||||
Total liabilities | $ | 16,577 | $ | 785 | $ | 15,792 | $ | — |
Description | Level | December 31, 2020 | ||||||||||
Assets: | ||||||||||||
Investments held in Trust Account—U.S. Treasury Securities Money Market Fund | 1 | $ | 207,376,213 | |||||||||
Liabilities: | ||||||||||||
Warrant Liability—Public Warrants | 1 | $ | 11,509,147 | |||||||||
Warrant Liability—Private Placement Warrants | 3 | $ | 11,003,918 |
Input | September 25, 2020 (Initial Measurement) | September 30, 2020 | ||||||||||
Risk-free interest rate | 0.26 | % | 0.28 | % | ||||||||
Trading days per year | 252 | 252 | ||||||||||
Expected volatility | 24.0 | % | 24.0 | % | ||||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||||||
Stock Price | $ | 9.36 | $ | 9.36 |
Input | September 25, 2020 (Initial Measurement) | September 30, 2020 | December 31, 2020 | |||||||||||||
Risk-free interest rate | 0.12 | % | 0.42 | % | 0.36 | % | ||||||||||
Trading days per year | 252 | 252 | 252 | |||||||||||||
Expected volatility | 24.0 | % | 24.0 | % | 25.0 | % | ||||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||||||
Stock Price | $ | 9.36 | $ | 9.36 | $ | 10.08 |
Private Placement | Public | Warrant Liabilities | ||||||||||
Fair value as of September 25, 2020 | $ | — | $ | — | $ | — | ||||||
Initial measurement on September 25, 2020 (IPO) | 8,160,000 | 12,800,000 | 20,960,000 | |||||||||
Change in valuation inputs or other assumptions | — | 100,000 | 100,000 | |||||||||
Fair value as of September 30, 2020 | 8,160,000 | 12,800,000 | 21,060,000 | |||||||||
Measurement on October 1, 2020 (Over-Allotment) | 200,518 | 475,495 | 676,013 | |||||||||
Change in valuation inputs or other assumptions | 2,643,400 | (1,866,348 | ) | 777,052 | ||||||||
Fair value as of December 31, 2020 | $ | 11,003,918 | $ | 11,509,147 | $ | 22,513,065 | ||||||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Operating lease cost | 4,499 | 3,780 | |||||||||
Short-term lease cost | 73 | 13 | |||||||||
Variable lease cost | 10 | 15 | |||||||||
Total lease cost | $ | 4,582 | $ | 3,808 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Cash flow from operating activities(1) | $ | 4,466 | $ | (3,068) | |||||||
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets | $ | 3,788 | $ | 11,006 |
Balance sheet classification | December 31, 2023 | December 31, 2022 | |||||||||||||||
Right-of-use assets | Other assets, noncurrent | $ | 11,456 | $ | 19,632 | ||||||||||||
Lease liabilities, current | Other current liabilities | $ | 3,636 | $ | 3,014 | ||||||||||||
Lease liabilities, noncurrent | Other liabilities, noncurrent | $ | 23,525 | $ | 23,402 |
For the year ended December 31, | |||||
2024 | $ | 4,993 | |||
2025 | 5,427 | ||||
2026 | 4,197 | ||||
2027 | 3,714 | ||||
2028 | 3,835 | ||||
Thereafter | 10,704 | ||||
Total undiscounted lease payments | $ | 32,870 | |||
Less: imputed interest | $ | (5,709) | |||
Total lease liability | $ | 27,161 | |||
Current | $ | 3,636 | |||
Noncurrent | $ | 23,525 |
December 31, 2023 | December 31, 2022 | ||||||||||
Bitcoin | $ | 262,231 | $ | 15,717 | |||||||
Ether | 196,016 | 75 | |||||||||
Shiba Inu | 143,237 | — | |||||||||
Dogecoin | 78,524 | — | |||||||||
Other | 21,548 | — | |||||||||
Safeguarding obligation for crypto | $ | 701,556 | $ | 15,792 | |||||||
Safeguarding asset for crypto | $ | 701,556 | $ | 15,792 |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Available-for-sale securities | Cost Basis | Unrealized Gains/(Losses), net | Fair Value | Cost Basis | Unrealized Gains/(Losses), net | Fair Value | |||||||||||||||||||||||||||||
Government debt | |||||||||||||||||||||||||||||||||||
U.S. treasury bonds | 17,230 | 168 | 17,398 | 141,003 | 59 | 141,062 | |||||||||||||||||||||||||||||
Total available-for-sale securities | 17,230 | 168 | 17,398 | 141,003 | 59 | 141,062 |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Available-for-sale securities in an unrealized loss position | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Government debt | |||||||||||||||||||||||
U.S. treasury bonds | |||||||||||||||||||||||
Less than 12 months(1) | $ | — | $ | — | $ | 39,574 | $ | (381) | |||||||||||||||
12 months or more(1) | — | — | — | — | |||||||||||||||||||
Total available-for-sale securities | $ | — | $ | — | $ | 39,574 | $ | (381) | |||||||||||||||
(1) Indicates the length of time that individual securities have been in a continuous unrealized loss position. |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Cost Basis | Fair Value | Cost Basis | Fair Value | ||||||||||||||||||||
Due in one year or less | $ | 17,230 | $ | 17,398 | $ | 141,003 | $ | 141,062 | |||||||||||||||
Due after one year through five years | — | — | — | — | |||||||||||||||||||
Total available-for-sale securities | $ | 17,230 | $ | 17,398 | $ | 141,003 | $ | 141,062 |
NAME AND ADDRESS OF BENEFICIAL OWNER | NUMBER OF SHARES BENEFICIALLY OWNED | APPROXIMATE PERCENTAGE OF OUTSTANDING ORDINARY SHARES | ||||||
Five Percent Holders | ||||||||
VPC Impact Acquisition Holdings Sponsor, LLC(1)(2)(3) | 5,124,300 | 19.8 | % | |||||
Alpine Global Management, LLC(4) | 2,813,820 | 10.9 | % | |||||
Invesco Ltd.(5) | 2,391,105 | 9.2 | % | |||||
Millennium Management LLC(6) | 1,600,000 | 6.2 | % | |||||
Corbin Capital Partners Group, LLC(7) | 1,500,000 | 5.8 | % | |||||
Sculptor Capital LP(8) | 1,404,800 | 5.4 | % | |||||
Empyrean Capital Overseas Master Fund, Ltd.(9) | 1,208,580 | 4.7 | % | |||||
Point72 Asset Management, L.P.(10) | 1,159,546 | 4.5 | % |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
2.1 | 8-K | 001-39544 | 2.1 | January 11, 2021 | ||||||||||||||||||||||||||||||||||
2.2 | 8-K | 001-39544 | 2.1 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
2.3 | 8-K | 001-39544 | 2.1 | September 30, 2021 | ||||||||||||||||||||||||||||||||||
2.4 | 8-K | 001-39544 | 2.1 | November 3, 2022 | ||||||||||||||||||||||||||||||||||
2.5 | 8-K | 001-39544 | 2.2 | April 3, 2023 | ||||||||||||||||||||||||||||||||||
3.1 | 8-K | 001-39544 | 3.1 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-39544 | 3.2 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
4.1 | 8-K | 001-39544 | 4.1 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
4.2 | 8-K | 001-39544 | 4.2 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
4.3 | 8-K | 001-39544 | 4.1 | September 28, 2020 | ||||||||||||||||||||||||||||||||||
4.4 | 10-K | 001-39544 | 4.4 | March 31, 2022 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
4.5 | 8-K | 001-39544 | 4.3 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
4.6 | 8-K | 001-39544 | 4.1 | November 3, 2022 | ||||||||||||||||||||||||||||||||||
4.7 | 10-Q | 001-39544 | 4.2 | August 10, 2023 | ||||||||||||||||||||||||||||||||||
4.8 | 10-K | 001-39544 | 4.6 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
10.1 | 8-K | 001-39544 | 10.1 | September 28, 2020 | ||||||||||||||||||||||||||||||||||
10.2 | 8-K | 001-39544 | 10.3 | January 11, 2021 | ||||||||||||||||||||||||||||||||||
10.3 | 8-K | 001-39544 | 10.10 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.4 | 8-K | 001-39544 | 10.6 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.5 | 8-K | 001-39544 | 10.1 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.6 | 8-K | 001-39544 | 10.2 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.7 | 8-K | 001-39544 | 10.3 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.8 | 8-K | 001-39544 | 10.1 | May 4, 2022 | ||||||||||||||||||||||||||||||||||
10.9 | 8-K | 001-39544 | 10.5 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.10+ | 8-K | 001-39544 | 10.9 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.11+ | X | |||||||||||||||||||||||||||||||||||||
10.12+ | 10-K | 001-39544 | 10.11 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
10.13+ | 10-K | 001-39544 | 10.12 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
10.14+ | 10-Q | 001-39544 | 10.1 | May 11, 2023 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
10.15* | 8-K | 001-39544 | 10.7 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.16+ | 8-K | 001-39544 | 10.1 | November 12, 2021 | ||||||||||||||||||||||||||||||||||
10.17+ | 8-K | 001-39544 | 10.12 | October 21, 2021 | ||||||||||||||||||||||||||||||||||
10.18+ | 8-K | 001-39544 | 10.2* | March 19, 2024 | ||||||||||||||||||||||||||||||||||
10.19+ | 8-K | 001-39544 | 10.1 | March 19, 2024 | ||||||||||||||||||||||||||||||||||
10.20+ | 10-K | 001-39544 | 10.18 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
10.21 | 8-K | 001-39544 | 10.1 | July 25, 2022 | ||||||||||||||||||||||||||||||||||
10.22 | 8-K | 001-39544 | 10.1 | September 12, 2022 | ||||||||||||||||||||||||||||||||||
10.23 | 8-K | 001-39544 | 10.2 | September 12, 2022 | ||||||||||||||||||||||||||||||||||
10.24 | 10-Q | 001-39544 | 10.2 | August 11, 2022 | ||||||||||||||||||||||||||||||||||
10.25 | 8-K | 001-39544 | 10.1 | October 13, 2022 | ||||||||||||||||||||||||||||||||||
10.26 | 8-K | 001-39544 | 4.1 | April 3, 2023 | ||||||||||||||||||||||||||||||||||
21.1 | X | |||||||||||||||||||||||||||||||||||||
23.1 | X | |||||||||||||||||||||||||||||||||||||
24.1 | X | |||||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1† | X | |||||||||||||||||||||||||||||||||||||
32.2† | X |
Date: | March 25, 2024 | BAKKT HOLDINGS, INC. | ||||||||||||||||||
By: | /s/ Gavin Michael | |||||||||||||||||||
(Principal Executive Officer) |
Signature | Title | Date | |||||||||||||
/s/ Gavin Michael | Chief Executive Officer, President and Director ( Principal Executive Officer) | ||||||||||||||
Gavin Michael | |||||||||||||||
/s/ | Chief Financial Officer ( Principal Financial Officer) | ||||||||||||||
Karen Alexander | |||||||||||||||
/s/ | Chief Accounting Officer ( Principal Accounting Officer) | ||||||||||||||
Chip Goodroe | |||||||||||||||
/s/ David C. Clifton | Director | 3/25/2024 | |||||||||||||
David C. Clifton | |||||||||||||||
/s/ Sean Collins | Director | ||||||||||||||
Sean Collins | |||||||||||||||
/s/ | Director | 3/25/2024 | |||||||||||||
Michelle J. Goldberg | |||||||||||||||
/s/ Richard Lumb | Director | 3/25/2024 | |||||||||||||
Richard Lumb | |||||||||||||||
/s/ Andrew A. Main | Director | 3/25/2024 | |||||||||||||
Andrew A. Main | |||||||||||||||
/s/ Gordon Watson | Director | 3/25/2024 | |||||||||||||
Gordon Watson | |||||||||||||||
/s/ De’Ana Dow | Director | 3/25/2024 | |||||||||||||
De’Ana Dow | |||||||||||||||
/s/ Jill Simeone | Director | 3/25/2024 | |||||||||||||
Jill Simeone |