Bakkt Appoints New Co-CEO, Refocuses on Crypto Amid Client Losses

Bakkt Holdings, a prominent firm in the crypto custody and trading sector, has appointed Akshay Naheta as its new co-CEO. This move is part of a broader strategy to refocus on its core crypto offerings following the loss of two major clients. Naheta, the founder of Distributed Technologies Research (DTR), will join current CEO Andy Main in leading the company. This partnership aims to integrate DTR's stablecoin-based payment infrastructure with Bakkt’s crypto trading and brokerage technology, subject to regulatory approval. The collaboration is expected to open new revenue streams in stablecoin payments and crypto trading, enhancing efficiency in cross-border payments, a popular use case for crypto.

Naheta's extensive experience in the financial and technology sectors, including his tenure at SoftBank Group, is anticipated to strengthen Bakkt's leadership and drive its strategic vision. SoftBank Group has a history of investing in crypto firms, which aligns well with Bakkt's focus on digital assets. The company's decision to refocus on its core offerings comes after it disclosed that major clients, including Bank of America and trading platform Webull, will not be renewing their contracts when they expire in April and June, respectively. Bank of America accounted for around 16% of Bakkt’s loyalty services revenue in 2023 and 2024, while Webull represented 74% of its crypto revenues over the same period.

In addition to the leadership change, Bakkt is exploring strategic alternatives for its loyalty services business, which allows clients to offer travel and merchandise perks. The company is considering selling or winding down this division to focus resources on its core crypto offerings. Bakkt has also announced the sale of its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. This sale is expected to cut operating costs by $3.8 million annually and free up around $3 million for investment into its crypto business. Despite the sale, Bakkt will maintain custody solutions through a network of reputable providers.

Bakkt's strategic shift is aimed at optimizing its resources and enhancing its competitive edge in the rapidly evolving digital asset landscape. By offloading non-core operations, the company aims to concentrate on its primary strengths, which include its innovative payment solutions and cryptocurrency services. The appointment of Naheta as co-CEO and the refocusing on core offerings are expected to position Bakkt more effectively to capitalize on emerging opportunities in the payments and cryptocurrency sectors. The company's leadership has emphasized the importance of this transformation in aligning Bakkt's operations with its long-term vision and market demands.

Bakkt reported its total 2024 revenues at $3.49 billion, up nearly 350% year-over-year, while its yearly net loss roughly halved to $103.4 million. Fourth quarter revenues increased more than seven-fold from 2024, reaching $1.8 billion, while its net loss narrowed to $40.4 million. The company forecast revenues of between $1.03 billion to $1.28 billion for the first quarter of 2025, which would be a nearly 50% bump from the first quarter of 2024. The strategic moves and leadership changes are expected to enhance Bakkt's operational efficiency and market competitiveness, paving the way for sustained growth and success in the years to come.