Why Did Bakkt Holdings Plunge 36.52% Amid Crypto Realignment?

On July 29, 2025, Bakkt Holdings experienced a significant drop of 36.52% in pre-market trading, marking a notable shift in investor sentiment towards the company.

Bakkt Holdings recently announced a $75 million public offering, which is expected to close around July 30, 2025. This move is part of the company's strategy to focus on its core crypto business by selling its Loyalty arm. The proceeds from this offering are intended to fund Bitcoin purchases and other strategic initiatives, signaling Bakkt's commitment to becoming a pure-play crypto infrastructure firm.

Bakkt's strategic realignment includes the sale of its Loyalty business for $11 million, further emphasizing its dedication to the crypto sector. This move comes at a time when regulatory clarity is improving, with the repeal of SAB 121 and the introduction of SAB 122, which have removed major accounting hurdles for crypto firms. Additionally, the SEC's Cyber and Emerging Technologies Unit and the CFTC's digital asset markets pilot program are creating a framework that balances innovation with oversight, making Bakkt's Bitcoin treasury strategy more viable.

Bakkt's updated investment policy allows for up to $1 billion in Bitcoin allocations, positioning the company to capture value across the entire crypto value chain. The $75 million raise is part of a broader strategy to leverage its infrastructure capabilities, including secure custody, global payments, and stablecoin integration. This approach mirrors the playbook of companies like MicroStrategy and Tesla, which have embedded Bitcoin into their treasuries as a hedge against inflation and a store of value.