Bakkt Appoints New Co-CEO Amid Strategic Shift Toward Core Crypto Offerings

Bakkt Holdings, the prominent crypto custody and trading firm, has announced a leadership change as part of a broader strategic refocus on its core cryptocurrency offerings. Akshay Naheta, the founder of Distributed Technologies Research (DTR), will join current CEO Andy Main as the company's new co-CEO, effective immediately.

This move comes as Bakkt seeks to streamline its operations by shedding certain non-core services and concentrating resources on its crypto offerings. The company stated on March 19 that it would enter into an agreement with DTR to integrate its stablecoin-based payment infrastructure with Bakkt’s crypto trading and brokerage technology, pending regulatory approval. This partnership aims to open new revenue streams through stablecoin payments and crypto trading, while enhancing the efficiency of cross-border payments—a growing use case for cryptocurrencies.

Naheta’s appointment follows a successful tenure in various executive roles at SoftBank Group, where he spent nearly six years overseeing investments in the technology sector. His DTR firm, founded in 2022, focuses on stablecoin payments infrastructure, aligning well with Bakkt’s new direction.

In addition to the leadership change, Bakkt disclosed plans to refocus its efforts on its crypto business, potentially scaling back or selling off certain services. Specifically, the company announced it might wind down or sell its loyalty services business, which offers travel and merchandise perks to clients. This decision follows a series of setbacks for the company, including the loss of two major clients—Bank of America and trading platform Webull. Bank of America, which accounted for approximately 16% of Bakkt’s loyalty services revenue in 2023 and 2024, will not renew its contract when it expires in April. Meanwhile, Webull, which represented 74% of Bakkt’s crypto revenues during the same period, is also choosing not to extend its partnership.

To further streamline operations, Bakkt revealed that it is selling its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange (ICE), for $1.5 million. The sale is expected to reduce operating costs by $3.8 million annually, freeing up around $3 million for reinvestment in its core crypto business. Despite the sale, Bakkt plans to maintain its custody solutions through a network of reputable third-party providers.

The strategic adjustments come in the wake of Bakkt’s recent earnings report for the fourth quarter and full year 2024. The company saw a dramatic rise in revenues, which surged nearly 350% year-over-year to $3.49 billion. Its net loss for the year halved to $103.4 million. In the fourth quarter, revenues grew by more than seven times, reaching $1.8 billion, while the net loss narrowed to $40.4 million.

Looking ahead, Bakkt has forecasted revenues for the first quarter of 2025 to fall between $1.03 billion and $1.28 billion, marking an almost 50% increase compared to the same period in 2024. However, the company’s stock has struggled amid the recent challenges. On March 18, Bakkt’s share price dropped by over 27%, closing at $9.33, after news of the client losses sent shockwaves through the market. Despite a slight recovery, the company's shares closed flat at $9.31 on March 19, down nearly 62.5% year-to-date and having lost nearly all of their value since peaking above $1,000 in October 2021.

As Bakkt navigates these changes, its future will likely hinge on the success of its crypto-focused initiatives and its ability to adapt to an evolving industry landscape.