Nike Quietly Sells RTFKT After Shutting Down Web3 Operations

Nike has completed the sale of its digital products subsidiary RTFKT, a unit focused on NFTs and virtual fashion, in December 2025. The transaction, which took effect on December 16, was disclosed in early January 2026 by multiple outlets, including The Oregonian and Wu Blockchain. Nike acquired RTFKT in 2021 as part of its broader strategy to explore the Web3 space. The unit had announced in January 2025 that it would discontinue its Web3 services, a move that now appears to have paved the way for the sale according to reports.

The deal was conducted quietly, with no public disclosure of the buyer, the sale price, or other terms. Nike has not provided further details about the transaction. RTFKT's shutdown in early 2025 marked a turning point for the brand's Web3 strategy, and the sale now concludes the chapter of direct ownership in the digital fashion and NFT sector. Nike has continued to engage in smaller digital partnerships, such as those with Fortnite and EA Sports, but no longer plans to develop new NFTs or virtual fashion under the RTFKT brand as reported.

RTFKT was a pioneer in digital wearables, creating products like CloneX avatars, Cryptokicks, and Space Drip fashion for metaverse environments. Nike's acquisition in 2021 positioned the company at the forefront of digital fashion.

However, the company shifted strategies under new leadership, led by CEO Elliott Hill, who has prioritized core retail operations and strengthening relationships with wholesale partners. The sale suggests a broader trend among major brands to reassess direct digital asset investments.

Why Did This Happen?

Nike's decision to sell RTFKT reflects both market conditions and corporate strategy shifts. The NFT market has seen volatility since its 2021 peak, and regulatory uncertainty has further complicated operations in the Web3 space. As of 2025, many brands are opting for partnerships over internal Web3 ventures, a move that aligns with Nike's current approach according to analysis.

The sale also comes amid financial challenges for Nike, including a 30% drop in sales for its Converse brand. This decline has raised questions about the company's broader portfolio and growth strategy. The new leadership at Nike is emphasizing a return to core sports products and more stable retail channels. RTFKT's Web3 initiatives, while innovative, appear to have been deemed incompatible with the company's current focus as noted.

What Are Analysts Watching Next?

Industry analysts view the RTFKT sale as a strategic pivot rather than an abandonment of digital innovation. Many experts believe that the move reflects a growing trend of brands collaborating with specialized Web3 creators rather than maintaining in-house teams. This approach reduces financial risk and allows for more flexible experimentation according to industry analysis.

The undisclosed identity of the buyer will be a key point of interest. Potential acquirers could include Web3 investment firms, fashion brands, or technology companies with an interest in digital fashion. The value of RTFKT's intellectual property and its existing community of NFT holders may influence the buyer's decision. Analysts will be watching whether the new owner plans to continue or pivot the studio's original mission as reported.

Existing RTFKT NFTs and digital assets remain unaffected by the sale, according to reports. Holders of CloneX and Cryptokicks NFTs should continue to interact with these assets as before, though future developments will depend on the new owner's plans. For now, there is no indication of changes to the blockchain-based ownership of these digital items according to sources.

What This Means for Investors

The sale of RTFKT may not have a direct impact on Nike's stock price, but it does reflect a shift in the company's priorities. Nike is now focusing on core products and rebuilding relationships with key retail partners. This move aligns with recent analyst sentiment, which has been mixed as the company navigates a challenging market environment.

In recent months, several analysts have lowered their price targets for Nike stock due to ongoing challenges in China and the U.S. market. However, some maintain an Outperform rating, citing long-term confidence in the brand's ability to adapt. Nike's CEO recently purchased $1 million worth of company stock, signaling confidence in the company's future according to company reports.

The broader implications for the NFT market remain to be seen. Nike's experience with RTFKT suggests that even major brands are recalibrating their approach to digital assets. This may encourage other companies to adopt more flexible strategies while still maintaining exposure to the Web3 ecosystem. The coming months will be critical in determining how traditional brands will continue to engage with digital fashion and NFTs.