Bakkt Transitions Focus by Divesting Loyalty Division

By: Eva Baxter

Bakkt Holdings, a prominent name in the crypto trading and custody sphere, has officially announced the divestiture of its loyalty services business. The move underscores Bakkt's strategic pivot towards concentrating exclusively on its core competencies within the cryptocurrency and digital assets sector. As reported, the loyalty business has been sold to Project Labrador Holdco, LLC, a unit of Roman DBDR Technology Advisors, Inc., for a total consideration of $11 million.

This transaction is part of a broader strategic initiative by Bakkt to sharpen its focus on cryptocurrency operations. By offloading its non-core business segment, Bakkt aims to redirect resources and capital to enhance its infrastructure in crypto custody, trading, and stablecoin technologies. This transition indicates Bakkt's commitment to capitalizing on the burgeoning opportunities within the cryptocurrency market, by positioning itself as a specialized infrastructure provider.

In addition to the sale, Bakkt is also reportedly raising $75 million to bolster its transition and expansion plans. The firm’s leadership believes that streamlining its operations will not only improve operational efficiency but also allow Bakkt to serve its institutional clients with more focused crypto-as-a-service offerings. The closure of this deal is anticipated by the third quarter of 2025, post which Bakkt plans to expedite its business processes tailored around cryptocurrency innovations.

The divestiture deal also involves certain financial accommodations, including working capital adjustments and a short-term cash loan, aimed at facilitating a smooth transition. This strategic realignment marks a significant milestone for Bakkt as it reinvents itself to meet the increasing demand in the digital asset space.