Bakkt offloads loyalty business to build $11M crypto treasury armory

On Monday, crypto custody and trading firm Bakkt Holdings Inc. revealed it’s divesting its loyalty services arm to concentrate on core crypto infrastructure operations.

The firm agreed to sell its loyalty business for $11 million to Project Labrador Holdco, LLC, an affiliate of Roman DBDR Technology Advisors, Inc. The deal is slated to close in Q3 of this year. 

Bakkt Holdings wants to focus on core infrastructure solutions 

Bakkt Holdings Inc. and Roman DBDR Technology Advisors have agreed on $11 million in cash, subject to working capital and debt adjustments, plus a short-term restricted cash loan to support the transition.

Andy Main, Bakkt’s president and co-CEO, commented on the deal, saying, “With the pending sale of our Loyalty business, we’re taking a clear step toward becoming a leaner, crypto-first company.” 

The company also insisted that its new arrangement will allow it to dedicate resources to core crypto offerings and the stablecoin payments infrastructure.

Earlier this year, the firm had hinted at plans to sell its loyalty division after it confirmed the non-renewals from two major clients—Bank of America for loyalty services and Webull for crypto services. The two institutions’ decision, however, consequently triggered a sharp selloff, causing Bakkt’s shares to drop over 27% in just one day.

Investors even criticized the firm for failing to disclose the fragility of its revenue model. Some filed a lawsuit against the company, claiming it did not reveal the full extent of its financial dependence on the two major clients. The suit names several top Bakkt executives, including former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander.

Bank of America accounted for roughly 16% of Bakkt’s loyalty service revenue in 2023, and Webull, 74% of Bakkt’s crypto service revenue in 2024. 

Meanwhile, in June, Bakkt sought to raise up to $1 billion through various securities offerings, with some funds set for Bitcoin (BTC) purchases.  Moreover, in its latest update, the firm projected Q2 crypto revenues between $568 million and $569 million and outlined plans for a capital raise via a public offering of Class A shares and/or pre-funded warrants.

The company hopes to raise about $75 million to support digital asset acquisitions, working capital, and operational costs. The offering is expected to close on Wednesday.

Akshay Naheta, who became co-CEO in March, also said the company intends to implement agentic AI solutions to enhance its crypto and stablecoin products and will aggressively execute its treasury strategy.

Bakkt has been grappling with financial issues since 2021

In 2024, there was speculation that Trump Media & Technology Group wanted to acquire the company, which ultimately drove the company’s stock rally of over 160%. However, the two companies never confirmed the deal.

However, the company has openly been struggling with liquidity problems, and its stock has dwindled since 2021, despite realigning its business toward crypto custody and trading services. A February disclosure showed it lacked sufficient capital to sustain operations for the next 12 months.

Furthermore, on Monday, Bakkt Holdings (BKKT) shares closed nearly 5% lower and dropped an additional 27.8% in after-hours trading to $12.40, deepening its year-to-date loss to nearly 31%.

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