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20/03/25
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Bakkt Holdings Restructures Leadership and Strategy Amid Market Shifts
Bakkt Holdings, a prominent player in the cryptocurrency custody and trading space, has recently made significant leadership changes in response to shifting market dynamics. The company announced the appointment of Akshay Naheta as co-CEO alongside current CEO Andy Main. Naheta, who founded a stablecoin payments firm known as Distributed Technologies Research, brings a wealth of experience from his management roles at SoftBank Group, where he was involved with investments in various crypto firms.
As part of its strategic realignment, Bakkt intends to reduce its service offerings, specifically discontinuing its loyalty services business, which provides clients with travel and merchandise benefits. This pivot is aimed at concentrating resources on core cryptocurrency operations, especially following a recent upheaval in client relationships. The firm revealed that major clients Bank of America and Webull will not be renewing their contracts when they expire later this year, which significantly impacted its revenue base. Bank of America accounted for approximately 16% of Bakkt’s loyalty services revenue, while Webull contributed 74% to its crypto revenues in the recent fiscal year.
In an effort to strengthen its financial position, Bakkt is selling its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. This sale is projected to reduce operating costs by about $3.8 million annually, freeing up approximately $3 million for reinvestment into its crypto initiatives. The company reassured stakeholders that it will continue offering custody solutions via partnerships with established providers.
Financially, Bakkt reported impressive gains, with total revenues for 2024 reaching $3.49 billion, reflecting a 350% increase year-over-year. Despite this growth, the company narrowed its net loss to $103.4 million, with indications of a positive outlook for the first quarter of 2025, forecasting revenues between $1.03 billion to $1.28 billion. However, Bakkt’s share price has faced challenges, notably a substantial drop following the announcement of the contract expirations, leading to a year-to-date decrease of approximately 62.5%.
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