Cryptocurrency custody and trading platform Bakkt Holdings is selling off its loyalty business as it moves to become a focused crypto infrastructure firm, the company said Monday.
The Nasdaq-listed platform signed a deal to sell the unit to Project Labrador Holdco, a subsidiary of Roman DBDR Technology Advisors. The sale is expected to close in the third quarter of 2025, priced at $11 million in cash, with additional adjustments for working capital and debt. The deal also includes a short-term restricted cash loan to help complete the transition.
“With the pending sale of our Loyalty business, we’re taking a clear step toward becoming a leaner, crypto-first company,” said Andy Main, Bakkt’s president and co-CEO.
The announcement was released alongside preliminary second-quarter crypto revenue estimates of $568 million to $569 million. Bakkt also said it plans to raise capital through a public offering of Class A shares and/or pre-funded warrants. The funds will be used to buy digital assets, support working capital, and cover general expenses.
The company noted that timing and pricing for the offering would depend on market conditions.
Meanwhile, Bakkt is facing a class-action lawsuit filed by a group of investors who claim the firm misled shareholders by failing to disclose the full extent of its financial dependence on two major clients: Webull and Bank of America.
The complaint seeks a jury trial and names several top Bakkt executives, including former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander.
Bank of America, which accounted for about 16% of Bakkt’s loyalty service revenue in 2023 saw its contract expired on April 22. Webull, which represented a larger 74% of Bakkt’s crypto service revenue last year, ended its agreement on June 14.
When both companies disclosed in March that they would not renew their contracts beyond 2025, Bakkt’s share price plummeted over 27% in a single day, prompting accusations that the firm failed to properly communicate the fragility of its revenue model.
This is another legal headache for Bakkt, which has already drawn scrutiny from multiple law firms investigating potential securities violations.
Adding to the turbulence, Bakkt’s stock previously jumped by over 160% in November 2024 following reports that Trump Media & Technology Group was considering acquiring the firm. No formal deal has been confirmed.
Bakkt was established by Intercontinental Exchange (owner of the NYSE) to enable Starbucks customers to purchase coffee with Bitcoin. Over time, it shifted its focus to crypto custody and trading services but faced financial struggles, including an announcement in February that it lacked funds to operate for another 12 months.
