Bakkt’s Bold Shift: Sells Loyalty Unit to Focus on Crypto Future

Bakkt Holdings, Inc. (NYSE: BKKT) has taken a decisive step towards solidifying its identity as a dedicated crypto infrastructure company by announcing a definitive agreement to sell its Loyalty business to Project Labrador Holdco, LLC. This pivotal transaction marks Bakkt’s final move to fully realign its operations exclusively around cryptocurrency, accelerating its focus on blockchain innovation and digital asset growth.

Preliminary financial disclosures for the second quarter of 2025 reveal Bakkt’s robust revenue stream, with total revenues estimated between $577 million and $579 million. Notably, gross crypto revenues dominate this figure, ranging from $568 million to $569 million, underscoring the company’s increasing emphasis on crypto-based business. In contrast, net loyalty revenues for the same period are expected to be modest, between $9 million and $10 million. This financial snapshot highlights Bakkt’s pivot from loyalty services to core crypto infrastructure.

Streamlining for Crypto Dominance

Andy Main, Bakkt’s President and Co-CEO, emphasized the significance of this sale, stating the company is now "fully embracing its future as a streamlined, pure-play crypto infrastructure company." Co-CEO Akshay Naheta added that the company is “singularly focused on accelerating innovation, enhancing operational efficiency, and building for scale,” reflecting a strategic refocus that aims to harness the momentum of the digital asset revolution.

With the sale expected to close in the third quarter of 2025, Bakkt gains liquidity and flexibility. As of June 30, 2025, the company holds approximately $60 million to $62 million in available cash and equivalents, with an additional $40 million accessible through an undrawn Revolving Credit Agreement. These financial resources are poised to fuel further expansion and investment.

Preparing for a $1 Billion Crypto Investment Surge

Complementing the divestiture, Bakkt has recently updated its investment policy to include acquisitions of Bitcoin and other digital assets as part of a broader treasury strategy. The company has filed to raise up to $1 billion through the issuance of securities, with the implicit goal of bolstering its crypto holdings.

Bakkt’s updated investment framework permits capital allocation into digital assets using excess cash, proceeds from equity or debt financing, or other sources subject to company policy. This reflects Bakkt’s commitment to integrating digital assets into its corporate treasury, positioning itself as a leader in programmable money and global crypto payments.

The company acknowledges the inherent volatility and risk associated with digital asset investments. Still, this aggressive move underscores Bakkt’s conviction in the transformative potential of blockchain technology and cryptocurrencies.

Both Co-CEOs underscored that the realignment and investment initiatives are designed to enhance long-term shareholder value and secure Bakkt’s place in the evolving crypto landscape