Bakkt Appoints New Co-CEO to Strengthen Crypto Focus | 2025
Bakkt Appoints New Co-CEO to Strengthen Crypto Focus
In a significant move aimed at revitalizing its operations, Bakkt Holdings, a prominent player in the crypto custody and trading sector, has appointed Akshay Naheta as its new co-CEO. This decision comes in the wake of the company losing two major clients, prompting a strategic shift towards enhancing its cryptocurrency offerings. Naheta, who previously founded the payments infrastructure firm Distributed Technologies Research (DTR), will work alongside current CEO Andy Main in this pivotal role.
Strategic Partnership with DTR
As part of its new direction, Bakkt has announced an agreement with DTR to integrate its stablecoin-based payment infrastructure with Bakkt’s existing crypto trading and brokerage technology. This partnership, pending regulatory approval, is expected to unlock new revenue streams in stablecoin payments and crypto trading, while also improving efficiency in cross-border transactions.
Naheta’s Background and Vision
Naheta brings a wealth of experience to Bakkt, having spent nearly six years in various executive roles at SoftBank Group, a company known for its investments in the cryptocurrency sector. His expertise in payments infrastructure is anticipated to be instrumental in driving Bakkt’s renewed focus on crypto offerings.
Refocusing on Core Crypto Offerings
In a recent statement regarding its fourth quarter and full year 2024 results, Bakkt expressed its intention to concentrate resources on its core crypto offerings. This includes a potential sale or winding down of its loyalty services business, which has allowed clients to provide travel and merchandise perks. The company is also in the process of selling its crypto custody subsidiary, Bakkt Trust, to its parent company, Intercontinental Exchange, for $1.5 million. This sale is projected to reduce operating costs by $3.8 million annually and free up approximately $3 million for reinvestment into its crypto business.
Impact of Client Losses
These strategic moves come on the heels of Bakkt’s announcement on March 17 that it would be parting ways with major clients, including Bank of America and trading platform Webull, as their contracts 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 a staggering 74% of its crypto revenues during the same period.
Financial Performance and Future Outlook
On March 19, Bakkt reported that its total revenues for 2024 reached an impressive $3.49 billion, marking a remarkable 350% increase year-over-year. Furthermore, the company’s yearly net loss has significantly decreased to $103.4 million. Looking ahead, Bakkt has forecasted revenues between $1.03 billion and $1.28 billion for the first quarter of 2025, indicating a nearly 50% increase compared to the first quarter of 2024.
Market Reactions
Following the announcement of these changes, shares of Bakkt (BKKT) closed flat at $9.31 on March 19, after experiencing a dip to $8.50 during trading. The stock reached a high of $9.88 after the market closed but has since stabilized around its closing price, according to Google Finance.
Conclusion
As Bakkt navigates through these changes, the focus on enhancing its crypto offerings is expected to position the company for future growth in the rapidly evolving cryptocurrency landscape. With Naheta at the helm alongside Main, Bakkt aims to leverage its partnerships and technological advancements to create new opportunities in the crypto market.
Stay tuned for more updates on Bakkt and the broader cryptocurrency industry as we continue to monitor key business trends, regulatory shifts, and emerging financial opportunities.
