Bakkt Sells Loyalty Business to Focus on Crypto Trading Infrastructure

Company Divests Non-Core Operations for $11 Million

Bakkt Holdings Inc., a leading crypto custody and trading firm, has announced the sale of its loyalty services business as part of a strategic shift toward becoming a pure-play crypto infrastructure company. The company reached a definitive agreement to sell its loyalty division for $11 million to Project Labrador Holdco, LLC, a subsidiary of Roman DBDR Technology Advisors, Inc.

The transaction, expected to close in the third quarter of 2025, includes provisions for working capital adjustments, debt transfers, and a short-term cash loan to facilitate the business transition. This divestiture represents a significant milestone in Bakkt's transformation strategy.

Strategic Refocus on Core Crypto Services

The loyalty business sale allows Bakkt to concentrate its resources on core cryptocurrency offerings and stablecoin payments infrastructure. The loyalty division previously enabled clients to offer travel and merchandise rewards programs, but the company determined this was not aligned with its crypto-focused vision.

Bakkt President and Co-CEO Andy Main emphasized the strategic importance of this move, stating that the company is embracing its future as a streamlined crypto infrastructure provider. The sale enables the firm to dedicate all resources to core crypto offerings and capitalize on opportunities in the stablecoin payments ecosystem.

Background of Corporate Restructuring

This divestiture follows Bakkt's March announcement regarding its intention to focus exclusively on crypto services while seeking to offload its loyalty operations. The decision came after two major clients, Bank of America and Webull, chose not to renew their agreements for loyalty and crypto services respectively.

Co-CEO Akshay Naheta, who joined the company in March, outlined plans to deploy artificial intelligence solutions to enhance crypto and stablecoin offerings while executing an aggressive treasury strategy.

Stablecoin Market Opportunities Drive Strategy

The timing of Bakkt's strategic pivot aligns with significant growth in the stablecoin sector. Recent regulatory developments in the United States have provided clearer frameworks for stablecoin operations, creating substantial market opportunities. The stablecoin payments ecosystem has emerged as a high-growth area within the broader cryptocurrency industry.

Stablecoin issuer Circle Internet Group's successful public offering, which raised over $1 billion and saw shares gain nearly 500 percent, demonstrates investor appetite for stablecoin-focused companies.

Financial Performance and Funding Initiatives

Bakkt reported preliminary second-quarter 2025 financial results showing strong revenue growth. The company estimates total revenues between $577 million and $579 million for Q2, representing at least a 13 percent increase compared to $509.9 million in the year-ago quarter.

Gross crypto revenues for the quarter ranged from $568 million to $569 million, up at least 14.2 percent from $497.1 million in Q2 2024. These results demonstrate the company's core crypto business momentum despite operational challenges.

Public Offering to Fund Bitcoin Acquisitions

Simultaneously with the loyalty business sale announcement, Bakkt disclosed a $75 million public offering of Class A shares and pre-funded warrants. The offering, scheduled to close Wednesday, will provide capital for potential Bitcoin and digital asset purchases alongside general corporate purposes.

This funding initiative supports Bakkt's broader treasury strategy and reflects management's confidence in cryptocurrency market opportunities. The company previously filed for up to $1 billion in various securities offerings, with portions designated for Bitcoin acquisitions.

Market Response and Stock Performance

Bakkt Holdings stock experienced volatility following the announcements, closing Monday trading down nearly 5 percent and declining an additional 27.8 percent in after-hours trading to $12.40. The stock has faced pressure throughout 2025, declining approximately 31 percent year-to-date.

The company has historically struggled with cash flow challenges and share price performance since 2021, making the strategic refocus particularly critical for long-term viability.

Industry Context and Future Outlook

Bakkt's transformation occurs amid renewed investor enthusiasm for cryptocurrency infrastructure companies. The regulatory environment for digital assets continues evolving, creating opportunities for specialized service providers in custody, trading, and payments.

The company's focus on stablecoin payments infrastructure positions it to capitalize on the growing institutional adoption of digital assets for treasury management and payment processing. As traditional financial institutions increasingly integrate cryptocurrency services, pure-play crypto infrastructure providers may benefit from this market expansion.

Conclusion

The loyalty business divestiture marks a pivotal moment in Bakkt's evolution toward becoming a focused cryptocurrency infrastructure company. By eliminating non-core operations and concentrating resources on crypto services and stablecoin payments, the company aims to strengthen its competitive position in the rapidly expanding digital asset ecosystem.

Success will depend on Bakkt's ability to execute its refocused strategy while navigating ongoing market volatility and competitive pressures in the crypto infrastructure space.

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