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Crypto custody and trading firm Bakkt Holdings has appointed a new co-CEO and is cutting some of its services to focus on its crypto offerings after recently losing two major clients.
Akshay Naheta, the founder of stablecoin payments infrastructure firm Distributed Technologies Research (DTR), will join Bakkt CEO Andy Main in the role, the company said on March 19.
Bakkt added that it will enter into an agreement with DTR to integrate its stablecoin-based payment infrastructure with Bakkt’s crypto trading and brokerage technology, subject to regulatory approval.
Bakkt said the partnership would open new revenue streams in stablecoin payments and crypto trading while increasing efficiency in cross-border payments, a popular use case for crypto.
Naheta founded DTR in 2022 after a nearly six-year stint in various executive roles at investment management giant SoftBank Group, which has a history of investing in crypto firms.
In a separate statement reporting its fourth quarter and full year 2024 results, Bakkt said it wants “to focus resources on core crypto offerings” and was potentially looking to sell or wind down its loyalty services business, which allows its clients to offer travel and merchandise perks.
Bakkt recently shared its take on stablecoins ahead of it, sharing it had partnered with DTR. Source: Bakkt
Bakkt added that it was selling its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. It said the sale would cut operating costs by $3.8 million a year and free up around $3 million for investment into its crypto business.
The firm added it would maintain custody solutions “through a robust network of reputable custody providers.”
Its moves come after Bakkt disclosed on March 17 that its major clients, Bank of America and trading platform Webull, won’t be renewing contacts with the firm when they expire in April and June, respectively.
Bank of America accounted for around 16% of Bakkt’s loyalty services revenue in 2023 and 2024, while Webull represented 74% of its crypto revenues over that same period.
The disclosure sent its share price tumbling on March 18, which closed the trading day down over 27% to $9.33.
Bakkt improves top and bottom-line earnings
Bakkt reported on March 19 that its total 2024 revenues came in at $3.49 billion, up nearly 350% year-over-year, while its yearly net loss roughly halved to $103.4 million.
Related: Fund managers dump US stocks at record pace — Can recession fears hurt Bitcoin?
Fourth quarter revenues increased more than seven-fold from 2024, reaching $1.8 billion, while its net loss narrowed to $40.4 million.
It forecast revenues of between $1.03 billion to $1.28 billion for the first quarter of 2025, which would be a nearly 50% bump from the first quarter of 2024.
Shares in Bakkt (BKKT) closed flat at $9.31 on March 19 after a dip to $8.50 during trading; it reached a top of $9.88 after the bell but has since settled to around its closing price, according to Google Finance.
Bakkt is down nearly 62.5% so far this year and has essentially lost all value since peaking at over $1,000 in October 2021.
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