Bakkt Appoints New Co-CEO, Eyes 50% Revenue Growth in Q1 2025

Bakkt Holdings has appointed Akshay Naheta as its new co-CEO, marking a pivotal moment in the company's strategic direction. Naheta, who previously founded Distributed Technologies Research (DTR), a stablecoin payments infrastructure firm, will work alongside current CEO Andy Main to drive Bakkt's initiatives in blockchain-enabled payments. This appointment is part of a broader effort by Bakkt to unlock new revenue streams and enhance its capabilities in the cryptocurrency sector.

The integration of DTR's stablecoin payments technology with Bakkt's trading and brokerage platform is a key component of this strategic shift. DTR's infrastructure, which includes a suite of APIs, blockchain technology, and a proprietary routing system, aims to reduce costs and complexity in cross-border payments. This integration is expected to create new revenue streams in both crypto trading and cross-border payments, pending regulatory approvals. The move underscores Bakkt's commitment to leveraging stablecoin technology to drive growth and innovation in the cryptocurrency industry.

Naheta's appointment comes at a time when Bakkt is navigating significant changes, including the departure of major clients such as Bank of America and Webull. These clients had contributed substantially to Bakkt’s revenue, with Bank of America accounting for a significant portion of its loyalty services revenue and Webull accounting for a large share of its crypto revenue. The exit of these clients has prompted Bakkt to streamline its operations and focus on its core crypto services. In response, Bakkt has announced plans to sell or wind down its loyalty services business and offload its crypto custody subsidiary, Bakkt Trust, to Intercontinental Exchange for $1.5 million. This move is expected to reduce operating expenses by $3.8 million annually and reallocate $3 million into core crypto services.

Despite these challenges, 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. This financial performance highlights Bakkt's resilience and its potential for future growth in the cryptocurrency market.

Naheta's expertise in payments and blockchain technology, along with his experience as a former SoftBank executive, is expected to be instrumental in driving Bakkt's new strategic direction. His past investments in companies like Nvidia and ARM further underscore his deep understanding of the technology sector. As Bakkt continues to explore new partnerships and potential sales of a minority stake in DTR, Naheta's leadership will be crucial in navigating these strategic initiatives and ensuring the company's success in the evolving cryptocurrency landscape.