What to know:

• Bakkt Holdings’ shares dropped 35% following the loss of two major clients: Bank of America and Webull.
• These companies represented a significant share of Bakkt’s revenue related to loyalty and crypto services.
• Additionally, Bakkt has postponed filing its annual report.

Bakkt Holdings (BKKT), a platform for cryptocurrency trading and custody, witnessed a 35% decline in its stock price on Monday after announcing that Bank of America (BAC) and the crypto trading application Webull Pay will not be renewing their partnerships with the firm.

As of the latest updates, BKKT shares have slipped to $12.83 during after-hours trading. Notably, these stocks reached their peak in October 2021, valued at $1,063 shortly after Bakkt’s merger with VPC Impact Acquisition Holdings.

Bank of America constituted around 16% of Bakkt’s loyalty service income in 2023, while Webull accounted for an impressive 74% of its revenue from crypto services during the same timeframe. The contract with Bank of America is expected to expire on April 22, whereas Webull’s contract will conclude on June 14.

In light of these developments, Bakkt has sought an extension for submitting its 2024 annual report to the SEC.