Bakkt Holdings, a prominent crypto custody and trading firm, has announced significant leadership and strategic changes aimed at refocusing its core business offerings. Effective March 21, 2025, Akshay Naheta, founder of Distributed Technologies Research (DTR), will join current CEO Andy Main as co-CEO of Bakkt.

Akshay Naheta brings over two decades of experience in finance and technology, including senior executive roles at SoftBank Group, where he was involved in investments in companies like ARM and Nvidia. In 2022, he founded DTR to develop advanced stablecoin-based payment infrastructures. By aligning its leadership and forging strategic partnerships, Bakkt aims to strengthen its position in the digital assets industry and meet the evolving demands of institutional clients.

Strategic Partnership with DTR and Business Restructuring

Bakkt Holdings is undergoing a strategic transformation to strengthen its position in the crypto industry. A key component of this strategy is the integration of Distributed Technologies Research’s (DTR) stablecoin-based payment infrastructure into Bakkt’s existing crypto trading and brokerage technology, pending regulatory approval. This partnership aims to unlock new revenue streams in stablecoin payments and enhance efficiency in cross-border transactions, a rapidly growing sector within the crypto space.

In addition to this partnership, Bakkt is restructuring its business to focus on core crypto offerings. The company is exploring the sale or wind-down of its loyalty services business, which provides clients with travel and merchandise perks. Moreover, Bakkt has announced the sale of its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. This move is expected to reduce operating costs by $3.8 million annually and free up approximately $3 million for reinvestment into Bakkt’s core crypto operations. These strategic initiatives reflect Bakkt’s commitment to refocusing resources on its core crypto offerings, positioning the company for growth in the evolving digital asset landscape.

Financial Performance and Market Impact

Despite the challenges, Bakkt has reported strong financial growth in 2024. Total revenues surged to $3.49 billion, marking a nearly 350% year-over-year increase. The firm’s net loss also improved, narrowing to $103.4 million. In the fourth quarter alone, Bakkt’s revenues grew seven-fold, reaching $1.8 billion, while its net loss reduced to $40.4 million.

However, news of major client departures, including Bank of America and Webull, has impacted Bakkt’s market standing. Bank of America accounted for 16% of Bakkt’s loyalty services revenue, while Webull represented 74% of its crypto revenues. The stock reacted negatively, dropping over 27% to $9.33 on March 18, although it later stabilised around $9.31.

What Lies Ahead for Bakkt?

Bakkt Holdings has projected first-quarter 2025 revenues between $1.03 billion and $1.28 billion, marking a substantial increase from the previous year’s figures. This optimistic outlook is primarily driven by the company’s strategic emphasis on its core crypto offerings, notably stablecoin infrastructure and crypto custody solutions.

Historically, Bakkt’s stock has experienced significant volatility. The all-time high closing price was $42.52 on October 29, 2021. As of March 5, 2025, the stock closed at $15.95, reflecting a notable decline from its peak.

Chart 1- Published in Google Finance, March 20, 2025. 

In response to these fluctuations, Bakkt has undertaken strategic restructuring to realign its focus on the crypto sector. This includes divesting non-core services and forming strategic partnerships to enhance its stablecoin and crypto custody offerings. The company is also exploring the expansion of cross-border stablecoin payments, which could offer significant growth opportunities. Investors and industry observers are closely monitoring Bakkt’s initiatives to assess their effectiveness in navigating the evolving crypto landscape and achieving long-term stability.