Bakkt Holdings is making bold leadership and strategic changes as it refocuses on its core crypto offerings. The digital asset firm announced the appointment of Akshay Naheta as co-CEO, joining Andy Main, in a move signaling its renewed push into the evolving crypto market.
Naheta, founder of stablecoin infrastructure firm Distributed Technologies Research (DTR) and a former SoftBank executive, brings a fresh perspective as Bakkt pivots away from non-core businesses. His appointment comes at a critical juncture, with Bakkt seeking to stabilize after losing two major clients.
Alongside the leadership shakeup, Bakkt revealed plans to integrate DTR’s stablecoin-based payment infrastructure into its platform. The partnership, pending regulatory approval, is designed to unlock new revenue streams and expand Bakkt’s presence in stablecoin payments and cross-border crypto trading.
“This collaboration enhances our focus on scalable crypto solutions while tapping into the growing demand for efficient, blockchain-based payments,” the company stated.
Naheta’s background at SoftBank — known for its investments in prominent crypto firms — positions him to lead Bakkt’s shift toward the stablecoin market, which continues to gain momentum globally.
Exiting Loyalty, Doubling Down on Digital Assets
In its latest financial results, Bakkt confirmed plans to wind down or sell its loyalty services division, which once allowed corporate clients to offer rewards like travel perks and merchandise. This division became less viable after Bank of America, a key partner, decided not to renew its contract.
Bakkt is also offloading its crypto custody unit, Bakkt Trust, to parent company Intercontinental Exchange for $1.5 million. The sale is expected to slash annual operating costs by $3.8 million and free up capital for reinvestment into its core crypto brokerage and trading business.
Despite exiting direct custody services, Bakkt reassured stakeholders it would maintain access to secure storage through a network of trusted third-party providers.
Major Client Exits Trigger Market Jitters
The restructuring follows a challenging period for Bakkt. Both Bank of America and trading platform Webull opted not to renew contracts, a move that could significantly impact revenue. Webull alone contributed 74% of Bakkt’s crypto revenue over the past two years, while Bank of America accounted for 16% of loyalty program earnings.
The news sent Bakkt’s stock plunging 27% on March 18, closing at $9.33. The company’s share price — once soaring above $1,000 in 2021 — has since collapsed by over 62% this year, reflecting mounting investor concern.
Despite the turbulence, Bakkt reported strong top-line growth. Annual revenue surged nearly 350% year-over-year to $3.49 billion in 2024. Meanwhile, net losses narrowed to $103.4 million, down by half.
Fourth-quarter earnings reflected similar trends, with revenue soaring sevenfold to $1.8 billion and losses trimmed to $40.4 million. Looking ahead, Bakkt projects Q1 2025 revenue between $1.03 billion and $1.28 billion, signaling continued momentum despite recent setbacks.
Can Bakkt’s Crypto Pivot Pay Off?
Bakkt’s decision to pivot back to crypto — supported by Naheta’s expertise and a streamlined business model — signals a clear bet on the digital asset sector’s resilience. However, the road ahead remains uncertain as it rebuilds revenue streams lost from legacy clients.
The company’s emphasis on stablecoins and cross-border payments taps into a fast-growing market but also puts Bakkt head-to-head with emerging fintech rivals.
As crypto markets rebound and institutional interest returns, Bakkt’s bold strategic shift could restore investor confidence. But the firm’s ability to execute this pivot — without further client attrition — will ultimately determine whether it can regain its footing in an increasingly competitive space.
Takeaway
Bakkt is betting big on crypto once more, cutting the fat to chase growth in digital assets and stablecoin payments. If successful, it could mark the start of a turnaround — but risks remain high as it navigates this critical transition.
