Bakkt Holdings has sold its loyalty services business to focus on cryptocurrency infrastructure. The deal, priced at $11 million, is set to close by Q3 2025.
Sale of Bakkt's Business
Based in Alpharetta, GA, Bakkt has sold its loyalty services to Project Labrador Holdco, LLC. This move highlights the company's ambition to become a 'pure-play crypto' entity and enhance its core crypto offerings.
Market Reaction and Stock Response
Following the announcement, Bakkt’s stock plummeted by 36.52%, reflecting investor caution. The company also announced a $75 million public offering to increase resources and support its strategic focus.
Bakkt's Future in the Crypto Industry
This strategic shift raises concerns among stakeholders about short-term financial performance. Bakkt aims to strengthen its crypto services and focus on stablecoin infrastructure, potentially aligning with broader industry trends.
The situation with Bakkt underscores the importance of adaptation in the changing landscape of the cryptocurrency market and the necessity for strategic realignments to maintain competitiveness.
