Shares of Bakkt Holdings, Inc. (NYSE:BKKT) plummeted 30% in overnight trading following the announcement that Bank of America (NYSE:BAC) will not renew its commercial agreement with the company, a significant blow considering the bank’s contribution to Bakkt’s revenue. Additionally, Webull Pay LLC also decided not to extend its commercial agreement, further impacting the company’s financial outlook.

Bakkt Holdings, which specializes in loyalty and crypto services, disclosed the termination of these crucial partnerships in an SEC filing. The existing contract with Bank of America is set to expire on April 22, 2025, with the bank accounting for approximately 16% and 17% of Bakkt’s loyalty services revenue in the year ended December 31, 2023, and the nine months ended September 30, 2024, respectively. The loss of this partnership is expected to have a substantial impact on the company’s loyalty services segment.

The situation is further exacerbated by Webull’s decision to end its commercial agreement, which will expire on June 14, 2025. This is particularly significant as Webull represented about 74% of Bakkt’s crypto services revenue for the same time periods. The double blow from both Bank of America and Webull raises concerns about the future of Bakkt’s revenue streams and its ability to attract and maintain major partnerships.

Adding to the company’s challenges, Bakkt announced its inability to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, within the prescribed timeframe. The company cited the need for additional time to complete its consolidated financial statements and to finalize supporting documentation for the independent audit. Bakkt is working diligently to address these issues and plans to file the Form 10-K within the fifteen-day extension period allowed by Rule 12b-25.

Investors reacted sharply to the news, reflecting the potential risk to Bakkt’s future earnings and market position. The loss of significant revenue from two major partners, combined with the delay in financial reporting, has raised uncertainty about the company’s operational stability and financial health. As the market processes these developments, Bakkt’s stock has experienced a significant drop, reflecting the market’s reassessment of the company’s value and prospects.