Nike Sells NFT and Virtual Sneakers Unit RTFKT Amid Waning Digital Art Market Interest

Nike has completed the sale of its NFT and virtual sneakers subsidiary RTFKT, marking the end of its three-year foray into the digital art and Web3 space. The transaction took place in December 2025, according to multiple reports. The company had previously announced the suspension of RTFKT operations in January 2024.

This move reflects a broader strategic pivot under CEO Elliott Hill, who has redirected Nike's focus toward its core sports and footwear products. The sale of RTFKT follows Nike's earlier announcement to pause NFT production and exit its Web3 services by the end of 2024.

The NFT market has been in a downturn for much of 2025, with total market capitalization dropping more than 67% year-over-year. This context shaped Nike's decision to offload its NFT unit as part of a wider reassessment of digital investments.

Why the Move Happened

Nike acquired RTFKT in December 2021 under former CEO John Donahoe as part of a strategy to expand into digital sales and virtual products. The company's pivot under Hill reflects a preference for partnerships over internal Web3 ownership.

The NFT market's decline and regulatory uncertainty have pushed companies to reevaluate their digital strategies. Nike's decision aligns with a trend where corporate investments in wholly-owned NFT subsidiaries have dropped by 40% in 2024, while brand partnerships with Web3 platforms rose by 65%.

Nike's move also coincided with challenges in its other divisions. For instance, its Converse brand reported a 30% sales drop in Q4 2025, contributing to broader portfolio reassessments.

How Markets Responded

The NFT market has seen a significant slump, with monthly NFT sales dropping to $320 million in November 2025 and falling further in December. Major platforms like OpenSea and X2Y2 have also shifted strategies or shut down NFT-specific operations.

The cancellation of high-profile events like NFT Paris in early 2026 underscored the market's struggles. Organizers cited the market collapse as the reason for their decision.

Nike's sale of RTFKT appears to have been a calculated step rather than a failure of its digital strategy. The company emphasized that it will continue to innovate in digital and virtual environments, though no specific plans have been announced.

What Analysts Are Watching

Analysts note that Nike's strategy shift mirrors a broader trend among traditional brands to move away from direct NFT ownership. Instead, companies are favoring flexible collaborations and shared-risk models.

The undisclosed identity of the RTFKT buyer has generated speculation. Potential buyers could include Web3 investment firms, competing fashion brands, or management buyout teams.

The sale of RTFKT also raises questions about existing NFT holders. While the digital assets remain on the blockchain, future development will depend on the new owner's strategy.

Investors and analysts are now watching how Nike's renewed focus on physical products and traditional partnerships will affect its revenue and market performance in the coming year.

Nike's stock has faced recent headwinds, with RBC Capital lowering its price target to $78 from $85 due to challenges in Greater China and Converse performance. Despite this, the firm maintains an Outperform rating for the stock.