BSLK

Bolt Projects Holdings ($BSLK) Crashes 99% as Major Shareholders Dump Shares

06/04/2025 16:21

$BSLK (Bolt Projects Holdings) has delivered a nightmarish journey for investors since mid-2024. The stock has plummeted over 99% from around $220 per share in June 2024 to the current mid-$3 range, inflicting massive losses on shareholders. The dramatic collapse that began in mid-August 2024 was particularly shocking. After reaching $244 on August 9th, the stock crashed to $145 within days, then continued its relentless descent, hitting a low of $1.81 in late May 2025. While recent sessions have seen a modest recovery back to the $3 range, the stock remains down over 98% from its peak. Insider trading activity reveals the severity of the situation. Major shareholder Golden Arrow Sponsor LLC conducted substantial selling from December 2024 through February 2025. In late December, they sold approximately 500,000 shares at average prices of $0.50-0.51, followed by another 700,000 shares in February at $0.68-0.81. This selling occurred even as shares had already collapsed to penny stock levels. Timothy Babich and President Cintia Nardi also sold shares in mid-May. Babich disposed of over 56,000 shares between May 13-20 at prices ranging from $2.28-6.75, while Nardi sold 4,727 shares from May 14-16 at $5.57-6.31. The fact that management was selling even at these depressed levels signals a concerning lack of confidence in the company's prospects. However, some recent insider buying has emerged. Officer Randy Befumo purchased 29,500 shares at $2.28 on May 28th, and CTO David Breslauer bought 300 shares at $3.25 on June 3rd. While these purchases could indicate bottom-fishing opportunities, their limited scale appears insufficient to counter the broader negative sentiment. The company executed a 1-for-20 reverse stock split on April 21, 2025. Reverse splits are typically last-resort measures to avoid delisting due to minimum price requirements, highlighting the severity of the company's situation. In its Q1 2025 results, the company projected at least $4.5 million in revenue for 2025 and $9.0 million for 2026. However, with a market capitalization of just $9.9 million, the credibility of these revenue projections remains questionable to investors. As a small-cap stock, $BSLK faces extreme volatility exposure. Limited trading volume creates liquidity risks, institutional investor disinterest persists, and most critically, continued selling pressure from key shareholders prevents any meaningful recovery. While the current price level may limit further downside potential, meaningful upside appears unlikely without fundamental improvements. As long as major shareholders and management continue disposing of shares, investor confidence recovery remains elusive. The company's ability to present concrete business strategies and execution plans will be crucial for any future investment consideration.

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