Bakkt Holdings Inc., a crypto custody and trading firm, has sold its loyalty services division as part of its strategy to become a “pure-play crypto infrastructure company.”
The company announced on Monday that it has agreed to sell the loyalty business—which enabled clients to offer travel rewards and merchandise perks—for $11 million to Project Labrador Holdco, LLC, a subsidiary of the SPAC Roman DBDR Technology Advisors, Inc.
The transaction, which also includes provisions for working capital, debt, and a short-term cash loan to facilitate the transition, is expected to close in the third quarter of 2025.
Bakkt said the divestiture will allow it to concentrate fully on its core crypto and stablecoin payments infrastructure. The company had first signaled in March its intention to streamline operations around crypto. Around the same time, two of its largest clients—Bank of America and Webull—declined to renew agreements for loyalty and crypto services, respectively.
Bakkt to “pure-play crypto”
“With the pending sale of our Loyalty business, Bakkt is reaching a major milestone and fully committing to its vision as a focused, pure-play crypto infrastructure company,” said Andy Main, Bakkt’s president and co-CEO.
He noted that the divestiture will allow Bakkt to concentrate its resources on its core crypto operations and the growing stablecoin payments sector.
Interest in stablecoins has surged recently, especially after the U.S. passed new legislation earlier this month to regulate the sector. Even before that, stablecoin issuer Circle Internet Group launched a public offering in early June that valued the company at over $1 billion, with its stock soaring nearly 500% since debut.
Co-CEO Akshay Naheta, who joined Bakkt in March, said the company plans to leverage “agentic AI solutions” to enhance its crypto and stablecoin offerings and will “execute aggressively on our treasury strategy.”
In June, Bakkt announced plans to raise up to $1 billion through a mix of securities offerings, with some of the capital earmarked for Bitcoin (BTC) purchases.
Bakkt’s renewed crypto focus comes as investor interest in the sector surges. However, the company has struggled financially, with persistent cash flow issues and a steadily declining stock price since 2021.
Shares of Bakkt Holdings (BKKT) closed down nearly 5% on Monday and plunged another 27.8% in after-hours trading to $12.40, extending a nearly 31% decline year-to-date.
Preliminary Q2 Results Reveal Earnings Increase
Bakkt has released its unaudited preliminary earnings for the second quarter, projecting total revenues between $577 million and $579 million.
This marks a year-over-year increase of at least 13% compared to the $509.9 million reported in the same quarter last year.
Estimated gross crypto revenues for Q2 are expected to come in between $568 million and $569 million, reflecting a rise of at least 14.2% from the $497.1 million reported in Q2 2024.
Bakkt’s $75 Million Public Offering May Be Used to Purchase Bitcoin
Separately on Monday, Bakkt announced a $75 million public offering of its Class A shares and pre-funded warrants.
The offering is expected to close on Wednesday, with the company stating that a portion of the proceeds may be used to purchase Bitcoin and other digital assets, in addition to supporting general corporate purposes.
