Bakkt Exits Loyalty Business, Focuses on Crypto After $75M Raise

Key Notes

• Bakkt has sold its loyalty business for $11M to focus exclusively on crypto and stablecoin infrastructure.
• The company announced a $75M public offering to raise funds for Bitcoin purchases and general operations.
• Bakkt stock plunged nearly 28% after hours, reflecting investor concern over dilution and long-term growth.

Bakkt Holdings Inc. has officially sold off its loyalty services arm for $11 million to Project Labrador Holdco, a subsidiary of Roman DBDR Technology Advisors, as it pivots to becoming a streamlined, “pure-play” crypto infrastructure provider.

Alongside this transition, Bakkt also announced a $75 million equity raise, sending its stock into a nosedive.

Shares Crash with Announcements

Shares of Bakkt closed down nearly 5% at $17.17 on July 28, before plunging another 27.78% in after-hours trading, falling to $12.40, data from Google Finance shows.

The sharp selloff could be a result of investor anxiety about dilution from the new share issuance and continued skepticism about Bakkt’s path to profitability, despite growing crypto revenues.

$75M in Proceeds

The public offering consists of over 6.75 million shares and nearly 750,000 pre-funded warrants, priced at $10 each. Bakkt has also granted underwriters the option to purchase an additional 1.125 million shares, bringing potential gross proceeds to over $75 million.

According to the company, the funds will be used to acquire Bitcoin and other digital assets, bolster working capital, and support general corporate operations.

Andy Main, Bakkt’s co-CEO, said that the company is now fully focused on core crypto offerings and expanding into stablecoin payment infrastructure.

His counterpart, Akshay Naheta, added that Bakkt aims to leverage agentic AI to enhance its digital asset services. The company will also extensively focus on crypto corporate treasuries.

Q2 Earnings Report

Despite the stock plunge, Bakkt’s preliminary Q2 earnings report suggests solid momentum with estimated revenues for the quarter projected between $577 million and $579 million, up 13% year-over-year.

Crypto-related revenue alone is expected to reach $568–569 million, a more than 14% increase from Q2 2024.

However, with the exit of major clients like Bank of America and Webull earlier this year, investors are questioning Bakkt’s long-term viability.

Bitcoin Purchase Ambitions

Joining the likes of Metaplanet, Strategy, and a range of other corporate entities, Bakkt earlier announced ambitions to raise a whopping $1 billion to purchase Bitcoin.

The fundraising would include various financial instrument offerings, including Class A common stock, debt securities, preferred stock, warrants, or combinations thereof.

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