In a bold move to dominate the crypto infrastructure space, Bakkt Holdings Inc. has sold its loyalty services business for $11 million, refocusing entirely on Bitcoin and stablecoin payments. This strategic pivot comes as the company reports a 13% year-over-year revenue growth, signaling strong momentum in the crypto sector.
Why Bakkt is Betting Big on Crypto Infrastructure
Bakkt’s decision to sell its loyalty segment to Project Labrador Holdco, LLC underscores its ambition to become a pure-play crypto services provider. The transaction, set to close in Q3 2025, aligns with the company’s goal to leverage regulatory clarity and growing institutional demand for digital payment solutions.
Stablecoin Payments: The Future of Bakkt
With crypto services revenue growing by over 14%, Bakkt is doubling down on stablecoin payments. Co-CEO Andy Main calls this a “milestone” as the company taps into the expanding stablecoin ecosystem, backed by recent U.S. regulatory developments.
$75M Public Offering to Fuel Bitcoin Acquisitions
To support its strategic shift, Bakkt has secured a $75 million public offering. The proceeds will fund Bitcoin and digital asset acquisitions, strengthening its treasury strategy and market position.
Challenges and Market Reaction
Despite the optimistic outlook, Bakkt’s share price fell nearly 5%, reflecting broader market volatility. The company faces execution risks as it navigates regulatory and competitive pressures in the crypto infrastructure space.
FAQs
Q: Why did Bakkt sell its loyalty business?
A: Bakkt sold its loyalty segment to focus exclusively on crypto infrastructure and stablecoin payments, aligning with its long-term growth strategy.
Q: How much did Bakkt’s revenue grow YoY?
A: Bakkt reported a 13% year-over-year revenue growth, with crypto services revenue increasing by over 14%.
Q: What is Bakkt’s plan for the $75 million public offering?
A: The proceeds will be used for Bitcoin and digital asset acquisitions, as well as general corporate purposes.
Q: How did the market react to Bakkt’s announcement?
A: Bakkt’s share price fell nearly 5% during regular trading, reflecting broader market volatility and investor caution.
