- Bakkt is selling its loyalty rewards division to Project Labrador Holdco as part of its shift toward core crypto services.
- The loyalty business generated about $10 million in revenue during the second quarter, compared to over $568 million from crypto-related services.
- The sale, valued at $11 million in cash, is expected to close in the third quarter of 2025 and includes short-term support for the transition.
- Company executives say the move will allow Bakkt to focus entirely on crypto infrastructure, stablecoin payments, and tokenized assets.
- Analysts believe the pivot clarifies Bakkt’s strategy but note challenges in competing with established industry leaders like Coinbase.
Bakkt is set to exit its loyalty rewards business and prioritize its digital asset services. The company announced an agreement to sell the loyalty unit to Project Labrador Holdco, a part of Roman DBDR Technology Advisors, for $11 million in cash. The transaction is expected to close in the third quarter of 2025.
The deal covers the division’s transfer, support for current liabilities, and includes a short-term restricted cash loan to aid the transition. According to Bakkt’s latest announcement, the company will also classify the loyalty business as a discontinued operation once the sale is complete. In the second quarter, the loyalty segment earned about $10 million, while crypto services brought in $568–569 million.
Co-CEO Andy Main said, “It sharpens our focus and allows us to dedicate all resources to core crypto offerings and the stablecoin payments ecosystem.” Co-CEO Akshay Naheta added that Bakkt will become “singularly focused on accelerating innovation, enhancing operational efficiency, and building for scale,” with goals to modernize its trading systems and develop a crypto treasury strategy.
The move aligns with broader steps by Bakkt to streamline its operations around crypto infrastructure, including secure asset custody, stablecoin payment systems, and tokenized asset solutions. Max Shannon of Bitwise Asset Management said in an interview with Decrypt that the sale “signals a clear shift away from retail-facing experiments and a doubling down on institutional-grade crypto infrastructure—a space where trust, security, compliance, and scalability matter most.”
However, Shannon also noted that Bakkt will have difficulty matching Coinbase’s presence, highlighting Coinbase’s strong hold on institutional partnerships such as custodying most U.S. Bitcoin ETFs. Analysts indicated that Bakkt’s capital raise might result from losses tied to the loyalty division and customer fund outflows.
Tomas Fanta of Heartcore stated that selling the loyalty segment was “a strategic decision to cut a low profit business line.” He commented that recent plans to add Bitcoin to Bakkt’s treasury may not deliver immediate benefits. Kony Kwong, CEO of GAIB, said, “Doubling down on custody, stablecoin rails, and tokenized assets is a clear signal that infrastructure is the only game worth playing in this market.”
Bakkt will need to define a competitive advantage, whether through improved technology, specific market focus, or deeper ties with institutional clients. For more information, see Bakkt’s official announcement.
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