Bakkt sells loyalty business to focus on being ‘pure-play crypto’

Key Points

1. Bakkt sold its loyalty business to Labrador Holdco, LLC, a subsidiary of Roman DBDR, to become a 'pure-play crypto' company.

2. Bank of America and Webull, two of Bakkt's largest clients, will not renew agreements for loyalty and crypto services, respectively.

3. Bakkt's co-CEO Andy Main stated the move aligns with the company's goal to focus on crypto infrastructure and stablecoin offerings.

4. Bakkt's share price has declined significantly, dropping nearly 5% in Monday trading and 27.8% after-hours, contributing to a 31% slump year-to-date.

5. Preliminary Q2 earnings show a potential 13% revenue increase compared to the previous year, with crypto revenues estimated between $568 million and $569 million.

6. Bakkt announced a $75 million public offering of Class A shares and pre-funded warrants, which could fund Bitcoin purchases.