Bakkt Holdings Inc. is making a decisive pivot toward becoming a pure-play cryptocurrency infrastructure company, announcing the sale of its loyalty services division for $11 million earlier this week.
The strategic divestiture marks the final step in the firm’s transformation from a diversified financial services provider to a focused crypto specialist, as digital asset adoption accelerates across institutional markets.
The deal with Project Labrador Holdco, LLC—an affiliate of Roman DBDR Technology Advisors—is expected to close in the third quarter of 2025. Under the agreement, Bakkt will receive $11 million in cash, subject to working capital and debt adjustments, plus provide a short-term restricted cash loan to facilitate the business transition.
This move represents a dramatic shift for the company, which has struggled with financial headwinds since 2021 despite multiple attempts to realign its business model. The loyalty division’s sale follows the loss of two major clients earlier this year—Bank of America and Webull—whose departures triggered a catastrophic 27% single-day stock decline and sparked investor lawsuits over alleged non-disclosure of revenue concentration risks.
Bakkt Strategic Realignment
Andy Main, Bakkt’s president and co-CEO, emphasized the transformative nature of this decision, stating that the divestiture represents “a clear step toward becoming a leaner, crypto-first company.” The restructuring will enable Bakkt to concentrate resources on its core cryptocurrency custody and trading infrastructure, along with emerging stablecoin payment solutions that represent the next frontier in digital finance.
The timing of this strategic pivot coincides with renewed institutional interest in cryptocurrency infrastructure services. Bakkt’s preliminary second-quarter financial results show gross crypto revenues of $568-$569 million, demonstrating the significant scale of its digital asset operations compared to the $9-$10 million generated by the divested loyalty business.
Co-CEO Akshay Naheta, who joined the leadership team in March, outlined ambitious plans to implement artificial intelligence solutions across Bakkt’s crypto and stablecoin offerings. The company’s roadmap includes upgrading its trading technology stack and executing an aggressive treasury strategy that could involve substantial Bitcoin acquisitions.
Capital Raise For Crypto
Concurrent with the loyalty business sale, Bakkt is pursuing a $75 million capital raise through a public offering of Class A shares and pre-funded warrants. The proceeds will support digital asset acquisitions, working capital requirements, and operational expenses as the company scales its crypto-focused operations.
This fundraising effort follows Bakkt’s earlier announcement of plans to raise up to $1 billion through various securities offerings, with portions earmarked for Bitcoin purchases. The ambitious capital-raising initiatives reflect management’s confidence in the long-term growth trajectory of cryptocurrency infrastructure services, despite the company’s recent operational challenges.
However, Bakkt’s financial position remains precarious. The company disclosed in February that it lacked sufficient capital to sustain operations for twelve months without additional funding. Available cash and restricted cash at June 30 totaled just $60-$62 million, though the company maintains access to $40 million in undrawn credit facilities.
Despite these near-term challenges, Bakkt’s strategic focus on cryptocurrency infrastructure positions it to capitalize on the growing institutional adoption of digital assets. The company’s pivot away from legacy loyalty services toward pure-play crypto operations could prove prescient as traditional financial institutions increasingly integrate blockchain-based solutions into their core business models.
