Bakkt Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Bakkt Holdings, Inc. has submitted its 2023 annual report (10-K), detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Bakkt Holdings, Inc. (BKKT-WT) filed a Annual Report (10-K) with the SEC on March 25, 2024. Bakkt Holdings, Inc. filed its 2023 Form 10-K on March 25, 2024. The filing covers the fiscal year ending December 31, 2023. The company was formerly known as VPC Impact Acquisition Holdings. Bakkt's business address is 10000 Avalon Boulevard, Suite 1000, Alpharetta, GA 30009. The SIC code for Bakkt Holdings, Inc. is 6199 (Finance Services).

Why It Matters

For investors and stakeholders tracking Bakkt Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Bakkt's financial health, operational activities, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's performance and future prospects. The filing includes detailed financial statements, risk factors, and management's discussion and analysis, offering insights into the company's challenges and opportunities within the evolving digital asset and loyalty program landscape.

Risk Assessment

Risk Level: medium — Bakkt Holdings, Inc. shows moderate risk based on this filing. The company's financial performance and ability to achieve profitability are subject to significant risks, including market volatility in digital assets and competition, as indicated by its ongoing operational status and past financial results.

Analyst Insight

Investors should carefully review the detailed financial statements and risk factors in the 10-K to understand Bakkt's current financial position and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-25 — Filing Date (FILED AS OF DATE)
• 6199 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• DE — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• Bakkt Holdings, Inc. (company) — CONFORMED NAME
• 2023 (date) — FY
• 2024-03-25 (date) — FILED AS OF DATE
• 10000 Avalon Boulevard, Suite 1000 (address) — BUSINESS ADDRESS
• Alpharetta (location) — CITY
• GA (location) — STATE
• 30009 (postal_code) — ZIP
• VPC Impact Acquisition Holdings (company) — FORMER COMPANY

FAQ

Industry Context

Bakkt operates in the finance services sector, specifically focusing on digital assets and loyalty programs.

Regulatory Implications

The company is subject to SEC regulations as a publicly traded entity, requiring annual filings like the 10-K.

What Investors Should Do

1. Review Bakkt's financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section to understand potential challenges and uncertainties.
3. Assess management's discussion and analysis for insights into operational strategies and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-25: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the 2023 annual report filing, following previous filings which would have covered prior fiscal periods.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share BKKT New York Stock Exchange

Filing Documents

• bakkt-20231231.htm (10-K) — 2343KB
• ex1011amendno1toequityplan.htm (EX-10.11) — 8KB
• exhibit211subsidiariesofba.htm (EX-21.1) — 8KB
• ex2312023bakktconsent32520.htm (EX-23.1) — 5KB
• exhibit311certification-ce.htm (EX-31.1) — 10KB
• exhibit312certification-cf.htm (EX-31.2) — 10KB
• exhibit321certification-ce.htm (EX-32.1) — 5KB
• exhibit322certification-cf.htm (EX-32.2) — 5KB
• ex97clawbackpolicy.htm (EX-97) — 31KB
• bakkt-20231231_g1.jpg (GRAPHIC) — 24KB
• bakkt-20231231_g2.jpg (GRAPHIC) — 23KB
• bakkt-20231231_g3.jpg (GRAPHIC) — 30KB
• bakkt-20231231_g4.jpg (GRAPHIC) — 24KB
• bakkt-20231231_g5.jpg (GRAPHIC) — 22KB
• bakkt-20231231_g6.jpg (GRAPHIC) — 22KB
• bakkt-20231231_g7.jpg (GRAPHIC) — 23KB
• 0001820302-24-000056.txt (&nbsp;) — 12236KB
• bakkt-20231231.xsd (EX-101.SCH) — 80KB
• bakkt-20231231_cal.xml (EX-101.CAL) — 141KB
• bakkt-20231231_def.xml (EX-101.DEF) — 539KB
• bakkt-20231231_lab.xml (EX-101.LAB) — 909KB
• bakkt-20231231_pre.xml (EX-101.PRE) — 725KB
• bakkt-20231231_htm.xml (XML) — 1598KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 27 Item 1B. Unresolved Staff Comments 73 Item 1C. Cybersecurity 73 Item 2.

Properties

Properties 75 Item 3.

Legal Proceedings

Legal Proceedings 75 Item 4. Mine Safety Disclosure 76 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 77 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 77 Item 7A. Qualitative and Quantitative Disclosures About Market Risk 97 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 98 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 148 Item 9A.

Controls and Procedures

Controls and Procedures 148 Item 9B. Other Information 148 Item 9C. Disclosure regarding foreign jurisdictions that prevent inspections. 148 PART III Item 10. Directors, Executive Officers and Corporate Governance 149 Item 11.

Executive Compensation

Executive Compensation 149 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 149 Item 13. Certain Relationships and Related Transactions, and Director Independence 149 Item 14. Principal Accountant Fees and Services 149 PART IV Item 15. Exhibit and Financial Statement Schedules 150 Item 16. Form 10-K Summary 153 -2- Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Unless the context otherwise requires, all references to "Bakkt," "we," "us," "our," or the "Company" in this Annual Report on Form 10-K (this "Report") refer to Bakkt Holdings, Inc. and its subsidiaries. This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. You can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," the negative of such terms, and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to our business. Forward-looking statements in this Annual Report on Form 10-K may include, for example, statements about: our future financial performance; changes in the market for our products and services; the expected benefits we will realize f

Business

Item 1. Business Overview In this section and elsewhere in this Annual Report on Form 10-K, we use the following terms, which are defined as follows: "Client" means businesses with whom we contract to provide services to customers on our platform, and includes financial institutions, hedge funds, merchants, retailers, third party partners, and other businesses (except in the accompanying notes to the consolidated financial statements, where we refer to revenue earned from customers, instead of clients. The term customers is in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers .). "Crypto" or "Crypto asset" means an asset that is built using blockchain technology, including virtual currencies (as used in the State of New York), coins, cryptocurrencies, stablecoins, and other tokens. Our platform enables transactions in certain supported crypto assets. For purposes of this Form 10-K, we use crypto assets, virtual currency, coins, and tokens interchangeably. "Customer" means an individual user of our platform. Customers include customers of our loyalty clients who use our platform to transact in loyalty points, as well as customers of our clients who transact in crypto through, and have accounts on, our platform (except as defined for ASC 606 purposes above). "Loyalty points" means loyalty and/or reward points that are issued by clients to their customers. Founded in 2018, Bakkt builds technology that enables our clients to deliver new opportunities to their customers through Software as a Service ("SaaS") and A pplication Programming interface (" API") solutions that unlock crypto and drive loyalty, powering engagement and performance. The global market for crypto, while nascent, is rapidly evolving and expanding. We believe we are well-positioned to provide innovative, multi-faceted product solutions and grow with this evolving market. Our platform is wel

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