Bakkt Holdings faces significant changes following the departure of two major clients, Bank of America and Webull.
Their contracts are set to expire in April and June. Notably, Bank of America contributed 16% of Bakkt’s loyalty services revenue in 2023 and 2024, while Webull accounted for 74% of its crypto revenue.
Following the announcement of their exit, Bakkt’s stock plummeted over 27% and closed at $9.33. In response, the company has appointed Akshay Naheta as co-CEO alongside Andy Main and focuses on streamlining operations to prioritize its core crypto services.
Naheta, founder of Distributed Technologies Research (DTR), will lead Bakkt’s new strategic direction. Without regulatory approval, Bakkt plans to integrate DTR’s stablecoin-based payment technology into its crypto trading and brokerage services. This partnership aims to create new revenue streams, improve efficiency in cross-border transactions, and strengthen Bakkt’s crypto infrastructure.
In its Q4 and full-year 2024 earnings report, Bakkt announced plans to sell or wind down its loyalty services business potentially and is offloading its crypto custody subsidiary, Bakkt Trust, to Intercontinental Exchange for $1.5 million. This move aims to reduce operating expenses by $3.8 million annually and reallocate $3 million into core crypto services. Bakkt confirmed that custody solutions will still be available through third-party providers.
Despite the setback, Bakkt reported strong financial performance for 2024, with total revenue of $3.49 billion, a nearly 350% year-over-year increase. The annual net loss narrowed to $103.4 million. In Q4, revenue surged to $1.8 billion, while the net loss decreased to $40.4 million. Looking ahead, Bakkt anticipates revenue between $1.03 billion and $1.28 billion for Q1 2025, marking a nearly 50% increase from the previous year. As of March 19, Bakkt (BKKT) shares closed at $9.31.
Meanwhile, in December 2024, Akshay made plans to sell a minority stake in DTR. According to sources cited by Bloomberg, the proceeds from the potential sale will fund the company’s expansion into new markets, including the United States.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
