Bakkt announced Monday its agreement to sell the loyalty business, which provided travel and merchandise benefits to clients, for $11 million to Project Labrador Holdco, LLC, a subsidiary of the blank-check firm Roman DBDR Technology Advisors, Inc.

The deal is anticipated to close in Q3 2025 and includes arrangements for working capital, debt repayment, and a short-term loan secured during the transition.

“With the pending sale of our Loyalty business, Bakkt is achieving a significant milestone and fully embracing its future as a streamlined, pure-play crypto infrastructure company.”

Bakkt cited the sale as enabling the company to “focus resources on the Company’s core crypto offerings and stablecoin payments infrastructure.”

This initiative aligns with Bakkt’s March announcements regarding its strategic pivot. At that time, the company stated it was looking to exit the loyalty sector, also citing that two major clients, Bank of America and Webull, would cease renewal of loyalty and crypto services contracts, respectively.

Bakkt Targets Core Crypto Growth

The decision comes as Bakkt emphasizes stablecoins and anticipates growing demand for crypto infrastructure following recent US regulatory developments concerning digital assets.

Since its June public offering debut (debuted early June with ≈$1B float, shares up nearly 500% since), stablecoin issuer Circle has captured market attention.

Akshay Naheta, co-CEO since March, confirmed plans to “deploy agentic AI solutions targeted at enhancing our crypto and stablecoin offerings” while executing “aggressively on our treasury strategy.”

Separately, Bakkt stated June intentions to raise up to $1 billion via securities, with part of the proceeds earmarked for purchasing Bitcoin.

Financial Performance and Market Reaction

Bakkt’s refinancing strategy follows a period of declining share prices. The company recently reported a preliminary Q2 revenue increase. Its estimated total revenue for Q2 2025 ranges from $577M to $579M, representing growth compared to the $509.9M recorded for the same period in 2024.

Crypto segment revenue estimated between $568M-$569M vs. $497.1M in Q2 2024, indicating a ~15.4% year-over-year increase.

However, the market reacted negatively to the sale announcement. Bakkt Holdings (BKXT) shares fell nearly 5% during regular trading on Monday and further sank ~27.8% to $12.40 in after-hours trading.

Shares closed Monday down nearly 5% and continued to fall around 27.8% after-hours to $12.40, adding to a nearly 31% slump its seen so far this year.

Meanwhile, Bakkt also disclosed a concurrent public offering of 25 million shares and warrants, potentially raising $75 million, part of which could be allocated towards purchasing Bitcoin and other digital assets.