- Bakkt Holdings completed the sale of its Loyalty business for $11 million.
- The buyer is Project Labrador Holdco LLC, a subsidiary of Roman DBDR Technology Advisers.
- The transaction aims to help Bakkt focus on digital assets and streamline operations.
- Despite an over 9% drop in Bakkt stock after the deal’s closure, retail investor sentiment appeared highly positive.
- Bakkt plans to concentrate on Bitcoin, tokenization, digital asset trading, stablecoin payments, and AI finance technology moving forward.
Bakkt Holdings announced the finalization of its $11 million sale of its Loyalty business to Project Labrador Holdco LLC, a company under Roman DBDR Technology Advisers. The agreement, first revealed on July 23, was closed as part of Bakkt’s strategy to focus on cryptocurrency and digital asset services.
Following the deal’s closure, Bakkt shares dropped more than 9% during morning trading. The company, however, indicated that the sale would help streamline its operations, reduce costs, and support its aim of achieving profitability.
“The sale of Loyalty is a defining inflection point for Bakkt — streamlining operations, lowering costs, strengthening our balance sheet, and sharpening our focus on growth,” said Akshay Naheta, CEO of Bakkt. He added that the move provides a “clear path toward profitability,” with plans to concentrate on core pillars such as Bitcoin, tokenization, digital asset trading, stablecoin payments, and AI-powered financial technology. “These are the arenas where Bakkt is uniquely positioned to lead and create durable, long-term value for shareholders,” he stated.
Previously, Bakkt’s Loyalty business provided travel and merchandise rewards to clients. The divestiture is part of the company’s effort to focus solely on developing its platform as a digital asset infrastructure provider.
In August, Bakkt entered into a share purchase agreement with RIZAP Group to acquire roughly 30% of the outstanding shares of MarushoHotta, a company listed in Tokyo. This step was presented as a way to broaden Bakkt’s international exposure to Bitcoin holdings, according to a filing with the Securities and Exchange Commission (SEC).
For further information on sector trends, see Ethereum-xrp-stocks-trading-rally-2024-05-22/”>BTC, ETH, XRP Rally Fuels Gains In Strategy, Bitmine, And Crypto-Linked Stocks.
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