Shares of the digital asset platform Bakkt (BKKT) continued their wild ride Tuesday, falling as much as 12% earlier this morning for no specific reason other than continued volatility. The stock is still up 19% over the last week after enjoying a nice run.
Companies like Bakkt that are in the crypto industry tend to move with the broader crypto market. But most of the crypto market has enjoyed some nice price action over the last 24 hours, although it is currently a bit mixed, so I don't think Bakkt's move today is tied to the crypto market. The stock might be taking a breather after a solid past week of trading.
But I am also surprised to see it falling today after Yves Lamoureux, president of the macroeconomic research firm Lamoureux & Co., told Marketwatch that he plans to double down on Bakkt. Lamoureux has a good deal of credibility, considering that he also called Bitcoin's top in November.
He said: "I like this one, particularly because I think they will [become] custodian to the U.S. dollar digital version. You know the central banks are all going to have their own currency,"
While Lamoureux called Bitcoin's top, he has so far been wrong about Bakkt, which he has strongly advocated for since last April. Bakkt went public through a blank-check company. The stock surpassed $42 last October but now trades at less than $6.
I do see Bakkt as having a potentially compelling use case because it helps people manage and spend their crypto assets while encouraging them to use crypto as a medium of exchange. I tend to like stocks that help facilitate and support the crypto industry without being so heavily linked to pure price action.
Bakkt is nowhere near profitability, and the volatility makes this stock very risky, but I am starting to get intrigued by the company at these levels.