Shares of Bakkt Holdings Inc (NYSE: BKKT) experienced a marked decline following the company's announcement of a new equity financing program valued at up to $300 million. This strategic financial move, revealed early Tuesday, allows Bakkt to issue common stock at its discretion as part of a shelf registration filed in June 2025. However, Bakkt confirmed that no shares have been sold to date under this facility.
Management articulated that the newly established $300 million program is intended to provide enhanced financial flexibility. The capital raised through this offering is planned to support Bakkt's growth initiatives, notably the expansion of its Zaira stablecoin payments platform and Bolstering its presence in key international markets, including Japan and India.
While the company's stated purpose highlights a focus on long-term strategic opportunities and strengthening the balance sheet, the equity program announcement prompted a negative reaction in the stock market. Bakkt's shares fell sharply during the trading session, reflecting investor concerns about potential dilution and increased share supply.
From a technical standpoint, Bakkt's stock has been underperforming, trading well below its major moving averages and currently positioned nearer its 52-week lows than its highs. The stock has declined approximately 39.91% over the past year, signifying persistent challenges in investor sentiment and trading momentum.
Though specific Relative Strength Index (RSI) data is unavailable, the Moving Average Convergence Divergence (MACD) indicator signals bearish pressure on the stock, underscoring the continuation of weak momentum. Key price resistance and support levels have been identified at $19.00 and $15.00 respectively, suggesting critical thresholds for potential price movements.
Looking ahead, the market is anticipating Bakkt's upcoming earnings report scheduled for March 18. Analysts project the company will report an earnings per share (EPS) loss of $0.47, which would represent an improvement from the previous year's loss of $2.95 per share. Meanwhile, revenue is expected to decline substantially to approximately $279.87 million from $1.80 billion year-over-year.
Additional market evaluation through the Benzinga Edge scorecard provides insights into Bakkt’s current positioning relative to the broader market. The company holds a Momentum score of 5.76 out of 100, indicating underperformance in comparison to market peers, despite the presence of some bullish indicators. This mixed signal reinforces a cautious outlook among investors.
On Tuesday, Bakkt's shares dropped 18.92%, reaching a price point near $17.36 as per Benzinga Pro data at the time of publication. This price movement contributes to ongoing concerns about the stock’s ability to sustain upward trends in the near-term.
Overall, Bakkt's announcement of its ATM equity offering program underscores its commitment to securing financial resources to support operational expansion and product scaling in emerging payment technologies and international growth markets. However, market response coupled with technical analysis signals a period of uncertainty and caution for holders and prospective investors.