Bakkt Holdings Inc. Divests Loyalty Services
Bakkt Holdings Inc., a prominent player in crypto custody and trading, is divesting its loyalty services segment as part of a strategic shift towards establishing itself as a dedicated crypto infrastructure provider. The firm announced on Monday that it has reached an agreement to sell its loyalty services, which enable clients to provide travel and merchandise benefits, to Project Labrador Holdco, LLC for a total of $11 million. This entity is a subsidiary of the special purpose acquisition company Roman DBDR Technology Advisors, Inc. The sale is projected to finalize in the third quarter of 2025 and will incorporate provisions for working capital, existing debt, and a short-term cash loan to facilitate the transition.
Strategic Shift Towards Crypto Infrastructure
This divestiture aligns with Bakkt’s aim to concentrate its efforts on its primary offerings in cryptocurrency and stablecoin payment systems. Earlier this year, the company had indicated its intent to divest its loyalty division, particularly after learning that significant clients like Bank of America and Webull would not be renewing agreements related to loyalty services and crypto operations.
Andy Main, Bakkt’s president and co-CEO, highlighted that this sale marks a key achievement for the company as it embraces its vision of becoming a streamlined, “pure-play crypto infrastructure” entity.
He noted that this shift would enable the company to allocate its full resources towards enhancing its crypto services and leveraging the potential within the stablecoin payments market.
Market Trends and Future Plans
The interest in stablecoins has surged following recent regulatory advancements in the U.S., which were introduced earlier this month. The momentum was further fueled by Circle Internet Group, a stablecoin issuer that conducted a groundbreaking public offering surpassing $1 billion in early June, witnessing a remarkable increase of nearly 500% in its stock value thereafter.
In a testament to Bakkt’s renewed focus, Akshay Naheta, who stepped in as co-CEO in March, expressed intentions to implement cutting-edge AI solutions aimed at bolstering their crypto and stablecoin capabilities while aggressively pursuing a treasury strategy.
The company is also in the process of seeking to raise up to $1 billion through various security offerings, with plans for a portion of the capital to be allocated for Bitcoin acquisitions.
Financial Performance and Stock Update
Despite the enthusiasm surrounding the crypto space, Bakkt’s stock performance has not been promising; shares fell nearly 5% on Monday and declined a further 27.8% in after-hours trading, amounting to a total drop of approximately 31% year-to-date.
In a separate announcement, Bakkt revealed preliminary financial data for Q2, estimating its revenues to range between $577 million and $579 million, an increase of at least 13% from $509.9 million in the same quarter last year. Additionally, the estimated gross revenues from its crypto services are projected to reach between $568 million and $569 million, reflecting a rise of at least 14.2% from the previous year’s performance.
Alongside these developments, Bakkt unveiled plans to conduct a public offering of Class A shares and pre-funded warrants aiming to raise $75 million, with the funds potentially earmarked for purchasing Bitcoin and enhancing its corporate initiatives.
