Bakkt Sells Loyalty Business for $11M to Refocus on Crypto Custody Stablecoin Infrastructure as It Raises $75M for Expansion

Bakkt has announced plans to divest its loyalty rewards business to focus on crypto custody, trading, and stablecoin infrastructure, aiming to strengthen its position in institutional-grade digital asset services. The company is selling the loyalty segment to Project Labrador Holdco for $11 million in cash, a move intended to streamline operations and reallocate resources toward core crypto offerings. Concurrently, Bakkt is raising $75 million to fund its pivot, addressing financial pressures from customer fund outflows and operational losses previously tied to the loyalty segment [1].

The loyalty business, which generated $10 million in Q2 revenue, will be classified as a discontinued operation, with adjustments for liabilities and a restricted cash loan to ease the transition. By comparison, Bakkt’s crypto operations reported $568–$569 million in Q2 revenue, underscoring the strategic rationale for refocusing on high-growth segments [2]. The company’s updated business model emphasizes secure, scalable solutions for institutional clients, including stablecoin payment systems and tokenized assets. Industry experts highlight that trust, security, compliance, and scalability are critical for competing in institutional markets, where demand for robust infrastructure is intensifying [3].

The strategic shift aligns with Bakkt’s broader goals to enhance its trading technology and crypto treasury strategy, aiming to improve operational efficiency and expand its stablecoin payments ecosystem. By prioritizing custody, stablecoin rails, and tokenized assets, Bakkt seeks to address gaps in the institutional crypto space, particularly in liquidity management and compliant transactions [4]. However, the company faces stiff competition from established players like Coinbase, which hold significant institutional partnerships and custody major Bitcoin ETFs. Analysts suggest Bakkt must leverage niche markets, technological innovation, and compliance strengths to carve out a unique value proposition [5].

Industry feedback on the loyalty business sale is mixed. While some view the move as a necessary step to cut low-profit operations, others question whether Bakkt’s addition of Bitcoin to its treasury reflects trend-driven decisions rather than a coherent strategy. Nevertheless, the focus on stablecoin infrastructure is widely seen as a response to market demands for faster, more secure payment solutions with reduced volatility [6]. Bakkt’s commitment to institutional-grade services is expected to drive innovation in custody and stablecoin ecosystems, though long-term success will depend on its ability to scale efficiently and differentiate itself in a crowded market [7].

The company’s future growth plans include upgrading its trading technology stack and accelerating its crypto treasury strategy. By enhancing operational efficiency and expanding its stablecoin payments network, Bakkt aims to position itself as a key player in institutional-grade crypto infrastructure. The $75 million capital raise will support these efforts, enabling Bakkt to compete in a market increasingly dominated by firms with deep institutional partnerships.

Source: [1] Bakkt Considers Exiting Loyalty Business to Focus on Crypto Custody and Stablecoin Infrastructure (https://en.coinotag.com/bakkt-considers-exiting-loyalty-business-to-focus-on-crypto-custody-and-stablecoin-infrastructure/)