Bakkt Holdings Inc. (NYSE: BKKT), the crypto custody and trading firm, is making a definitive shift to become a "pure-play crypto infrastructure company." This strategic refocus includes the sale of its loyalty services business and plans to acquire more Bitcoin (BTC).
Bakkt announced on Monday that it has agreed to sell its loyalty business, which provided travel and merchandise perks to clients, for $11 million to Project Labrador Holdco, LLC, a subsidiary of Roman DBDR Technology Advisors, Inc. The deal, expected to close in Q3 2025, also includes provisions for working capital and a short-term cash loan to facilitate the transition.
This divestiture marks the culmination of Bakkt's previously stated intention to streamline operations and concentrate on its core crypto offerings, especially after major clients like Bank of America and Webull did not renew their loyalty and crypto services agreements earlier this year.
"With the pending sale of our Loyalty business, Bakkt is achieving a significant milestone and fully embracing its future as a streamlined, pure-play crypto infrastructure company," stated Andy Main, Bakkt president and co-CEO. He emphasized that this move will allow Bakkt to dedicate all resources to its crypto services and the burgeoning stablecoin payments ecosystem.
Akshay Naheta, who joined Bakkt as co-CEO in March, highlighted plans to deploy "agentic AI solutions" to enhance crypto and stablecoin offerings and to "execute aggressively on our treasury strategy." The stablecoin market has seen significant growth and regulatory developments recently, with the U.S. passing new laws to regulate these tokens and stablecoin issuer Circle Internet Group completing a successful public offering.
Bakkt is actively seeking to raise capital for its renewed crypto focus. In June, the company announced its intention to raise up to $1 billion through various securities offerings, with a portion of these funds earmarked for Bitcoin (BTC) acquisitions.
Further underlining this strategy, Bakkt separately announced a $75 million public offering of Class A shares and pre-funded warrants on Monday. This offering, expected to close on Wednesday, explicitly states that some proceeds could be used "to purchase Bitcoin and other digital assets" in addition to general corporate purposes.
Bakkt's strategic pivot comes amidst a wave of investor enthusiasm for crypto firms, although Bakkt has historically faced cash flow challenges and a declining share price since 2021. Preliminary unaudited results for Q2 2025 show estimated total revenues between $577 million and $579 million, a notable 13% increase from the prior year. Gross crypto revenues are estimated at $568 million to $569 million, up over 14% year-over-year.
Despite these positive preliminary earnings, Bakkt's shares closed down nearly 5% on Monday and continued to fall by approximately 27.8% after-hours to $12.40, contributing to a nearly 31% year-to-date slump.This aggressive refocus and fundraising effort positions Bakkt to capitalize on the growing crypto economy, but its stock performance reflects ongoing investor scrutiny.
July 2025, Cryptoniteuae