Bakkt posted a first-quarter loss as revenue from its crypto services business plunged 77%, highlighting the company’s ongoing shift toward stablecoin payments and AI-driven financial infrastructure.
In results released Monday, Bakkt reported a net loss attributable to shareholders of $11.7 million, or 41 cents per basic and diluted share, for the quarter ended March 31. That marked a reversal from the $7.7 million net profit, or $1.13 per diluted share, recorded during the same period last year.
The company said crypto services revenue dropped sharply to $243.6 million from $1.07 billion a year earlier, mainly due to weaker cryptocurrency trading volumes. Bakkt noted, however, that most of the reported revenue was offset by crypto-related costs and brokerage fees, which reached $242 million during the quarter.
Excluding crypto costs, operating expenses remained relatively stable at $18.5 million, slightly below the $18.9 million reported a year ago.
Bakkt finished the quarter with $82.6 million in cash reserves, including $69.6 million raised through equity offerings during the period. The company also said it has no long-term debt on its balance sheet.
Bakkt shares closed 0.71% higher at $9.92 on Monday before falling 9.14% in pre-market trading Tuesday to $9.00 after the company released its earnings results.
Bakkt doubles down on stablecoins
The company’s declining revenue comes as Bakkt undergoes a major strategic shift away from crypto trading infrastructure and toward stablecoin payments and agentic AI technologies.
On April 30, Bakkt finalized its acquisition of Distributed Technologies Research, adding an AI-native payments engine and a stablecoin compliance platform to its business. The company also entered into a memorandum of understanding with stablecoin provider Zoth, which is targeting $1 billion in annualized payment volume across South Asia, the Middle East, and Sub-Saharan Africa.
“We believe stablecoin infrastructure represents one of the most significant structural transformations in global finance in decades,” CEO Akshay Naheta said in the earnings release. He also pointed to proposed US legislation such as the GENIUS Act and the CLARITY Act as regulatory developments that could strengthen demand for Bakkt’s licensed infrastructure offerings.
Investor interest in stablecoin infrastructure grows
Bakkt’s strategic pivot comes as public market investors increasingly focus on companies tied to stablecoin infrastructure.
Shares of Circle Internet Group climbed nearly 16% on Monday after the USDC issuer reported a 20% increase in first-quarter revenue and reserve income, reaching $694 million. Circle also disclosed a $222 million presale of its ARC blockchain token at a fully diluted valuation of $3 billion.
The company reported that USDC circulation rose 28% year-over-year to $77 billion by the end of the quarter, while onchain transaction volume surged 263% to $21.5 trillion.
