Bakkt (ticker BKKT) offloaded its loyalty rewards business in the third quarter, signaling the firm is close to completing its pivot to focus on institutional-grade trading, liquidity, and regulated custody as well as AI services, according to its third-quarter earnings report.
“The third quarter represents a defining moment in Bakkt’s transformation. We’ve simplified our structure, sharpened our strategy, and delivered positive adjusted EBITDA — clear evidence that our reset is working,” Bakkt CEO Akshay Naheta said. “With our transformation nearing completion, Bakkt is now positioned as a focused, capital-disciplined digital-asset infrastructure company built for scale and long-term profitability.”
Bakkt announced it would recenter around three “high-conviction” plays earlier this year in its latest attempt to find market fit.
Launched in 2018 with support from NYSE operator Intercontinental Exchange, Bakkt initially focused on launching an institutional-grade trading platform for daily physically-settled Bitcoin futures before taking a swing at tokenizing corporate rewards points.
Operational turnaround
The firm is now operating a “B2B2C model” as a turnkey operator for traditional institutions looking to get into crypto. Notably, Bakkt has acquired money transmitter licenses enabling it to facilitate crypto trading, transfers, and settlement in all 50 U.S. states. It has also launched a bitcoin treasury, financed through a public offering, and hired crypto vet Mike Alfred to its board.
Bakkt expects to expand internationally, beginning in Japan, by making minority investments.
“Our team executed decisively this quarter – collapsing the legacy Up-C structure, unifying the share class, eliminating all debt, and strengthening liquidity through disciplined capital raises,” Naheta said. “The result is a cleaner balance sheet, improved governance, and stronger institutional eligibility. Every dollar now goes toward monetization — trading spreads, custody fees, and stablecoin and payments volume.”
Bakkt saw revenue of $402.2 million in Q3 2025, up 27% year-over-year, and EBITDA of $28.7 million, up 241% year-over-year. It also ended the quarter long-term debt-free, with $64.4 million in cash and cash equivalents, according to its Securities and Exchange Commission filing.
That said, Bakkt’s net loss was $23.2 million for the quarter, which it said was “primarily driven by a non-cash loss from the change in fair value of the 2024 registered direct offering warrant liability mark-to-market of $37.2 million as a result of a material increase in Bakkt’s stock price in Q3 2025.”
Bakkt’s Nasdaq-listed BKKT shares are down nearly 12% on the day.
About this time last year, President Donald Trump’s social media company, Truth Social, was entertaining options to acquire Bakkt.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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