Crypto custody firm Bakkt named Andy Main as its next CEO, effective March 26, the company announced Monday.
Main, a member of Bakkt’s board of directors, will succeed Gavin Michael, who will step down to pursue other opportunities but will stay on through March 2025 as an adviser to the board and executive team on strategic matters.
“Andy has the expertise to lead the company forward from this inflection point, with a focus on broadening our institutional crypto capabilities, growing our client base, expanding internationally, and driving toward adjusted [earnings before interest, taxes, depreciation, and amortization] break-even,” Michael said in a statement.
Bakkt announced the leadership change just days after the New York Stock Exchange notified the company that it could be delisted for failing to maintain an average closing price of $1 or more per share over a 30-day trading period.
Bakkt informed the NYSE that it plans to fix the stock price deficiency and return to compliance with the stock exchange’s listing standard.
However, in an amended Securities and Exchange Commission filing, the firm informed its investors last month that it might run out of cash to continue operations in the next 12 months.
The company has entered a $40 million registered direct offering with institutional investors and a concurrent $10 million registered direct offering, Axios noted.
Bakkt rescheduled its fourth-quarter and full-year earnings call to March 25. In this call, Main is set to discuss his plans for the company, including how he wants to build upon Bakkt’s product foundation and scale the business.
“With the proceeds from our recent capital raise, and our plans to reduce cash expenses — primarily from legal entity integration, which was approved by [the New York Department of Financial Services] today — and related cost savings, we believe we have alleviated the conditions that raised substantial doubt about our ability to continue.
“Bakkt is well-positioned to capitalize on the market opportunity in crypto,” he said.
Main has served as a CEO before — at advertising and public relations powerhouse Ogilvy from 2020 to 2022. He also has worked as global head of Deloitte Digital.
“Over the course of his career, Andy has been at the forefront of technology — specifically, how to commercialize the latest technology innovations for some of the largest, most influential companies in the world,” Sean Collins, Bakkt’s board chair, said in a statement. “He is a proven company builder and change agent, and will bring his relentless focus on shareholder value creation to Bakkt.”
Michael led Bakkt through its public listing in 2021 after a merger with VPC Impact Acquisition Holdings. He also helped to close the acquisition of Apex Crypto last April and integrate the companies.
After Bakkt went public, stock prices dropped from around $10 to 55 cents as of Wednesday. The company shifted its focus to B2B clients after its consumer products failed to attract customers.
“We are grateful for Gavin’s many contributions to the company during his tenure, and we wish him success in his next chapter,” said Main, who has been on Bakkt’s board since it went public.
Alpharetta, Georgia-based Bakkt launched in 2018 with backing from NYSE parent company Intercontinental Exchange, Microsoft and Starbucks. Its founding CEO, Kelly Loeffler, served in the U.S. Senate in 2020 and 2021.
