Bakkt To Divest Loyalty Business, Focuses Entirely on Crypto Infrastructure
June 2025 — Bakkt Holdings Inc., a prominent player in crypto custody and trading, announced a strategic shift toward becoming a “pure-play crypto infrastructure company” by selling its loyalty services division.
Sale Details and Strategic Rationale
On Monday, Bakkt revealed it has agreed to sell its loyalty business, which provides clients with travel and merchandise perks, for $11 million. The buyer is Project Labrador Holdco, LLC, a subsidiary of Roman DBDR Technology Advisors, Inc., a well-known blank-check firm. The transaction is anticipated to close in the third quarter of 2025 and includes additional provisions concerning working capital, debt, and a short-term cash loan to facilitate a smooth ownership transfer.
This divestment aligns with Bakkt’s stated intention to “focus resources on the Company’s core crypto offerings and stablecoin payments infrastructure,” emphasizing a more refined corporate strategy centered exclusively on cryptocurrency-related services.
Background: Shifting Client Dynamics and Corporate Focus
Bakkt’s move reflects ongoing challenges and opportunities in its client portfolio. Earlier this year, in March, the company disclosed plans to shed its loyalty arm. That announcement coincided with two of its largest clients, Bank of America and Webull, opting not to renew agreements for loyalty and crypto services, respectively. These developments appear to have reinforced Bakkt’s decision to streamline its operations.
Andy Main, Bakkt’s president and co-CEO, characterized this sale as “a significant milestone” in achieving a streamlined focus on crypto. He emphasized the company’s commitment to dedicating “all our resources to our core crypto offerings and the immense opportunities in the stablecoin payments ecosystem.”
Co-CEO Akshay Naheta, who joined the firm in March, shared plans to “deploy agentic AI solutions targeted at enhancing our crypto and stablecoin offerings” and indicated a determination to “execute aggressively on our treasury strategy.”
Market Context and Growth Opportunities
Stablecoins have emerged as one of the hottest sectors within the crypto market recently, especially following new U.S. regulations enacted earlier this month to govern these digital tokens. The stablecoin issuer Circle Internet Group notably launched a public offering surpassing $1 billion in early June, with its shares soaring nearly 500% since that debut.
Bakkt aims to capitalize on this momentum. The company recently disclosed intentions to raise up to $1 billion through various securities offerings, with part of these proceeds earmarked for acquiring Bitcoin (BTC) and further bolstering its crypto treasury assets.
Financial Performance and Recent Market Activity
Bakkt also shared preliminary unaudited results for the second quarter, anticipating revenues between $577 million and $579 million. This marks at least a 13% increase compared to the $509.9 million reported for Q2 the previous year. Specifically, gross crypto revenues are expected to range from $568 million to $569 million, reflecting a growth of over 14.2% compared to $497.1 million in Q2 2024. In a separate announcement on Monday, Bakkt unveiled a public offering of Class A shares and pre-funded warrants aimed at raising $75 million. The closing is scheduled for Wednesday, with some of the funds intended “to purchase Bitcoin and other digital assets” alongside general corporate expenditures.
Despite these promising financial indicators, Bakkt’s stock has faced downward pressure, closing Monday’s trading session nearly 5% lower and falling about 27.8% in after-hours trading to $12.40. This after-hours decline adds to a year-to-date slump approaching 31%, continuing a downward trend that began in 2021 amid the company’s admitted struggles with cash flow.
Looking Forward
Bakkt’s strategic refocus on core crypto infrastructure and stablecoin payments positions it to take advantage of emerging regulatory clarity and investor enthusiasm within the digital asset landscape. By divesting non-core operations and concentrating on its crypto offerings, Bakkt aims to establish itself as a leading pure-play entity in the evolving cryptocurrency ecosystem.
For more updates on Bakkt and the latest in crypto market developments, stay tuned.