Bakkt Bets Big on Crypto: Leadership Shakeup & Core Focus Strategy
Bakkt Holdings has appointed Akshay Naheta as co-CEO and is restructuring its business to focus on core cryptocurrency offerings.
The company is also partnering with Distributed Technologies Research (DTR) to integrate stablecoin technology.
The cryptocurrency custody and trading firm has brought in Naheta, who will serve alongside current CEO Andy Main. Naheta, the founder of DTR, specializes in stablecoin payments infrastructure. His appointment comes as Bakkt seeks to strengthen its position in the evolving cryptocurrency market. Naheta previously held executive roles at SoftBank Group for nearly six years, gaining significant investment management experience.
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As part of its strategic shift, Bakkt plans to integrate DTR’s stablecoin-based payment system into its cryptocurrency trading and brokerage technologies, pending regulatory approval. The company expects this partnership to enhance efficiency in cross-border payments, a growing use case for blockchain technology, while creating new revenue streams in stablecoin payments and crypto trading.
Bakkt Streamlining Operations and Core Business Focus
In line with its renewed focus, the company is discontinuing certain non-core services. The company has announced the potential sale or closure of its loyalty services division, which offers clients travel and merchandise perks. This move aligns with Bakkt’s goal to allocate resources more effectively toward its cryptocurrency business.
Additionally, Bakkt has sold its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. The company expects this transaction to reduce annual operating costs by $3.8 million and free up approximately $3 million for reinvestment in its core crypto services. Despite the sale, the company assured investors that it will continue providing custody solutions through a network of trusted partners.
Also read: Stablecoin Boom: 53% Surge in Active Wallets Signals Massive Adoption
Challenges in Strategic Repositioning and Client Losses
The restructuring follows the recent loss of two major clients—trading platform Webull and Bank of America. Webull accounted for 74% of Bakkt’s crypto revenue, while Bank of America contributed around 16% of its loyalty services revenue. Both companies have opted not to renew their contracts, expiring in April and June, respectively. The announcement led to a sharp decline in Bakkt’s stock, which fell over 27% in a single trading session.
Despite these setbacks, Bakkt remains optimistic about its future. The company reported strong financial performance, with total revenue reaching $3.49 billion in 2024—a nearly 350% increase from the previous year. Its net loss also improved significantly, dropping to $103.4 million. Fourth-quarter revenue surged over sevenfold to $1.8 billion, while net loss narrowed to $40.4 million.
Looking ahead to 2025, Bakkt projects first-quarter revenue between $1.03 billion and $1.28 billion, representing an almost 50% increase from the same period in 2024.
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As the company navigates this transition, industry observers and investors will closely watch its ability to retain existing clients and capitalize on new opportunities within the rapidly evolving cryptocurrency sector.
