Cash-Strapped Bakkt Taps Former Softbank Heavyweight To Steer Its Crypto Revival

• Bank of America and Webull declined to renew contracts with Bakkt, impacting loyalty and crypto custody revenues.
• Bakkt is integrating stablecoin payments infrastructure from its new co-CEOs company.
• The firm reported nearly $1.8 billion in Q4 2024 revenue but posted a $40.4 million net loss.

Crypto firm Bakkt is restructuring after losing two key partners. With a new co-CEO and a shift toward stablecoin payments, Bakkt aims to navigate recent setbacks and reposition itself in the evolving digital finance landscape.

The news follows Bakkt’s long-awaited Q4 2024 earnings report, which was delayed twice amid growing operational challenges.

New Direction

Akshay Naheta, a Former SoftBank executive and founder of digital payments firm Distributed Technologies Research (DTR), has joined Bakkt as co-CEO.

Interestingly, it’s a double victory for Naheta as his firm, DTR, will be integrating its stablecoins payment infrastructure with Bakkt. He commented:

“I founded DTR with the vision that stablecoins provide unparalleled efficiency and utility in shaping the future of payment systems.”

Additionally, Bakkt plans to scale back certain services and transfer its crypto custody business to its parent company, Intercontinental Exchange (ICE).

This shift follows Webull’s decision not to renew its contract, a major blow since Webull accounted for 74% of Bakkt’s crypto revenues.

Bank of America’s exit will also cost the platform 17% of its loyalty services. In response, Bakkt is exploring alternatives to offset these losses.

Rather than focusing solely on retail and consumer-facing products, Bakkt appears to be pivoting toward digital payments infrastructure. This could position the firm for future growth as the U.S. moves toward stablecoin regulations.

Bakkt’s Q4 2024 Earnings: A Mixed Bag

The firm’s twice-delayed Q4 2024 earnings report was a mixed bag of results.

The firm posted $1.79 billion in revenue for the quarter, a 737.9% year-over-year increase driven by rising crypto trading activity and market gains from November 2024 onward.

However, Bakkt reported a net loss of $40.4 million for the quarter, bringing its full-year net loss to $103.4 million.

Looking ahead, Bakkt projects Q1 2025 revenue between $1.03 billion and $1.28 billion as it navigates its transition.