Key Takeaways
- 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.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
