Bakkt Holdings, Inc.: Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Company Name: Bakkt Holdings, Inc.
• Stock Symbol: BKKT (NYSE)
• Headquarters: Alpharetta, Georgia
• Total Revenue (2024): $3,490.2 million
• Crypto Services Revenue (2024): $3,441.1 million
• Loyalty Services Revenue (2024): $49.2 million
• Net Loss (2024): $103.5 million
• Total Assets (2024): $269.4 million
• Assets Under Custody (2024): $2,301.9 million
• Notional Traded Volume (2024): $4,183.2 million
• Crypto-Enabled Accounts (2024): 6.7 million
• Full-Time Employees: 559
• Incorporation State: Delaware
• Primary Regulator (NY): New York State Department of Financial Services (NYDFS)
• Key Strategic Pivot: Realigning business with a crypto focus; investigating sale/wind-down of loyalty business
• Major Shareholder: Intercontinental Exchange, Inc. (ICE)
• Auditor (Current): KPMG LLP
• Key New Partnership: Cooperation Agreement with Distributed Technologies Research Ltd. (DTR)

Company Overview

Bakkt Holdings, Inc. constructs technology ecosystems that empower clients to deliver novel opportunities to their customers through Software as a Service (SaaS) and Application Programming Interface (API) solutions. Founded in 2018, the company has positioned its platform to power commerce by enabling institutions, businesses, and consumers to better manage, transact with, and monetize crypto assets. The platform facilitates crypto trading capabilities and loyalty solutions, designed to be institutional-grade and born out of the company’s former parent, Intercontinental Exchange, Inc. (ICE).

The core of Bakkt’s operational philosophy revolves around a “Business-to-Business-to-Consumer” (B2B2C) model. Rather than engaging in direct-to-consumer marketing for customer acquisition, Bakkt partners with leading companies—such as financial institutions, fintechs, and merchants—to embed its capabilities directly into their existing environments. This strategy leverages the existing customer bases of these partners, allowing Bakkt to scale transacting accounts and volume more efficiently than a direct consumer model would typically allow.

Bakkt’s infrastructure is engineered to support “know your customer” (KYC), anti-money laundering (AML), and anti-fraud measures, ensuring a secure and compliant environment for financial transactions. The platform is flexible, allowing clients to choose specific capabilities—such as a “ready-to-go” web-based storefront or deep API integration—based on their unique needs and objectives.

Recent strategic developments indicate a significant shift in the company’s trajectory. As of early 2025, Bakkt is working to realign its business with a primary focus on crypto, investigating strategic alternatives for its loyalty business, including a potential sale or wind-down. Additionally, the company is expanding into institutional-focused trading platforms through BakktX and exploring global payment processing via a cooperation agreement with Distributed Technologies Research Ltd. (DTR).

Business Segments

Bakkt reports its financial performance through one operating segment but disaggregates its revenue into two primary service types: Crypto Services and Loyalty Services.

Crypto Services

• Revenue (2024): $3,441.1 million
• Percentage of Total Revenue: 98.6% (Calculated: 3,441.1 / 3,490.2)
• Primary Revenue Driver: Transaction revenue from crypto buy/sell trades

Profile: The Crypto Services segment has become the dominant driver of Bakkt’s financial performance, experiencing explosive growth with revenue increasing by $2,714.1 million in 2024 compared to the previous year. This segment operates primarily through Bakkt Crypto Solutions, LLC, which enables customers of clients to purchase, sell, store, and transfer crypto assets within the applications of clients they already trust.

Revenue in this segment is generated principally through transaction fees, where Bakkt charges a markup on both legs of a crypto buy/sell transaction. The company acts as a riskless principal in these transactions, offsetting each customer order by routing a corresponding order to a liquidity provider on a one-to-one basis. Additionally, the segment includes revenue from custody services, although the company is in the process of divesting its standalone institutional custody business, Bakkt Trust.

A critical component of this segment’s operation involves providing fiat funding services and managing the complex flow of funds between customer fiat wallets, Banking as a Service (BaaS) accounts, and brokerage accounts. The segment supports a wide array of crypto assets, including Bitcoin, Ethereum, and Solana, among others.

Loyalty Services

• Revenue (2024): $49.2 million
• Percentage of Total Revenue: 1.4% (Calculated: 49.2 / 3,490.2)
• Primary Revenue Driver: Transaction fees from point redemption and subscription platform fees

Profile: The Loyalty Services segment, operating largely through Bridge2 Solutions, LLC, focuses on enabling clients—such as financial institutions and airlines—to allow their customers to redeem loyalty points for a variety of rewards. These rewards include travel, merchandise, gift cards, and even crypto assets.

This segment generates revenue through multiple streams:

1. Platform Subscription Fees: Monthly fixed charges for clients to access the SaaS-based redemption platform.
2. Transaction Fees: Earnings from processing redemptions, recognized net of the related redemption costs.
3. Revenue Share Fees: Rebates from third-party merchants facilitating order fulfillment.
4. Service Fees: Charges for software development and call center support.

Despite being a foundational part of Bakkt’s history, this segment represented a minor portion of total revenue in 2024 and saw a year-over-year revenue decrease of 7.5%. The company announced in March 2025 that it is exploring strategic alternatives for this business to focus resources on the growing crypto market.

History and Evolution

Bakkt was founded in 2018 by Intercontinental Exchange, Inc. (ICE), the operator of the New York Stock Exchange, with the ambition of bringing trust and transparency to digital assets. The company initially focused on creating a regulated ecosystem for Bitcoin futures and custody.

2021: Public Listing and Corporate Structure On October 15, 2021, the company completed a business combination with VPC Impact Acquisition Holdings (VIH), a special purpose acquisition company (SPAC). Following this transaction, the company was renamed Bakkt Holdings, Inc. and changed its jurisdiction of incorporation to Delaware. The organization adopted an “Up-C” structure, where substantially all assets are held by the operating subsidiary, Bakkt Opco Holdings, LLC (Opco).

2022-2023: Strategic Acquisitions To accelerate its B2B2C strategy, Bakkt acquired Apex Crypto, LLC on April 1, 2023. This acquisition was transformative, providing Bakkt with a turnkey platform for integrated crypto trading and significantly expanding its client base to include fintechs and neobanks. The entity was subsequently renamed Bakkt Crypto Solutions, LLC. Earlier, in February 2023, Bakkt acquired Bumped Financial, LLC, a broker-dealer, although this entity was later wound down.

2024-2025: Pivots and Restructuring

The fiscal years 2024 and early 2025 marked a period of intense restructuring and strategic pivoting.

• Bakkt Trust Exit: In late 2024, the company moved to suspend customer activities at Bakkt Trust due to a lack of market traction and high capital costs. By March 2025, an agreement was reached to sell Bakkt Trust to ICE for $1.5 million plus the assumption of regulatory capital requirements.
• Loyalty Exit: Concurrently, Bakkt announced plans to exit the loyalty business to realign entirely with its crypto focus.
• BakktX Launch: The company formed BakktX ECN, LLC to launch an institutionally focused electronic communications network (ECN), licensing matching technology to offer competitive execution.
• Global Expansion: A cooperation agreement was signed with DTR in March 2025 to integrate global payment processing technology.

Products and Services

Crypto Trading and Execution

• Associated Revenue: Majority of $3,441.1 million Crypto Services Revenue
• % of Total Revenue: ~98.6%

Profile: Bakkt’s core offering enables customers to buy and sell crypto assets through client applications. The platform supports trading for over 30 crypto assets, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

• Mechanism: Customers place orders via the client interface. Bakkt acts as a riskless principal, aggregating quotes from liquidity providers to offer competitive pricing.
• Execution: Orders are routed to liquidity providers on a one-to-one basis. Bakkt supports both market and limit orders.
• Settlement: Trades settle with liquidity providers on a net basis, typically daily, ensuring efficient capital usage.

Crypto Custody

• Associated Revenue: Included in Crypto Services Revenue
• % of Total Revenue: Included in 98.6%

Profile:

Custody is integral to the trading service. Bakkt Crypto utilizes a hybrid approach to custody:

• Third-Party Custodians: Relationships with Coinbase Custody Trust Company and BitGo Trust Company are leveraged for cold storage and transfers.
• Self-Custody: Bakkt utilizes Fireblocks Vault technology to self-custody select assets (approximately 47% of total customer crypto assets as of Dec 31, 2024) to facilitate withdrawals.
• Security: The vast majority of assets are held in cold storage (offline), with only a small percentage in warm/hot wallets for liquidity.

Loyalty Redemption Platform

• Associated Revenue: $49.2 million
• % of Total Revenue: 1.4%

Profile:

This white-label SaaS platform connects loyalty programs to a broad redemption network.

• Storefronts: Configurable e-commerce interfaces where users redeem points for Apple products, merchandise, and travel.
• Travel Solutions: A retail booking platform with direct supplier integrations and live-agent support.
• Payment Split: Functionality allowing customers to split payments between loyalty points and credit cards.

BakktX (Institutional ECN)

• Status: In Development/Launch Phase
• Revenue: Not separately disclosed

Profile: BakktX is designed as an institutional-grade electronic communications network. It leverages Crossover Technologies’ proprietary matching engine to provide smart order routing and high-performance trade matching. This infrastructure is currently used by Bakkt Crypto to optimize retail execution and is intended to service institutional clients directly.

Brand Portfolio

Bakkt

• Scope: The overarching corporate brand representing the integrated platform.
• Revenue: Consolidated entity revenue ($3,490.2 million).

Profile: The Bakkt brand stands for regulated, institutional-grade infrastructure in the digital asset space. It encompasses the corporate identity and the unified platform strategy marketed to enterprise clients.

Bakkt Crypto

• Scope: The consumer-facing crypto trading and custody solution.
• Revenue: $3,441.1 million.

Profile: Operated through Bakkt Crypto Solutions, LLC, this brand represents the core crypto brokerage engine acquired from Apex Crypto. It holds the BitLicense and money transmitter licenses required to operate legally across the United States.

Bridge2 Solutions

• Scope: Loyalty redemption services.
• Revenue: $49.2 million.

Profile: Operating under Bridge2 Solutions, LLC, this brand services the loyalty sector. It is known for powering rewards programs for major financial institutions and airlines, although it is currently being evaluated for divestiture.

Geographical Presence

Bakkt primarily operates within the United States but has begun extending its reach internationally.

United States

• Revenue (2024): $3,419.7 million (Calculated: Total 3,490.2 – Foreign 70.5)
• % of Total Revenue: 98.0% (Calculated)

Profile:

The U.S. is Bakkt’s primary market.

• Licensing: Bakkt Crypto holds a “BitLicense” from the New York State Department of Financial Services (NYDFS) and money transmitter licenses in 46 states plus Washington D.C..
• Offices: The corporate headquarters is in Alpharetta, Georgia. Other key facilities include a customer service center in Scottsdale, Arizona, and a satellite office in New York, New York.

International (Latin America, Europe, Asia)

• Revenue (2024): $70.5 million
• % of Total Revenue: 2.0% (Calculated: 70.5 / 3490.2)

Profile: Bakkt has recognized revenue from foreign jurisdictions including Latin America, Europe, and Asia. Revenue from foreign sources grew significantly from $15.9 million in 2023 to $70.5 million in 2024. The expansion strategy leverages the “Bakkt Global” initiative and partnerships to deploy technology in new jurisdictions.

Financial Performance Analysis

Bakkt experienced massive topline growth in 2024 driven by its Crypto Services segment, despite continuing to report net losses.

Profit and Loss Analysis

Metric	2024 (in $thousands)	2023 (in$ thousands)	2022 (in $ thousands)	YoY Change (24 vs 23)
Total Revenues	**$3,490,220**	$780,136	$56,224	+347%
Crypto Services Revenue	$3,441,056	$726,988	$1,745	+373%
Loyalty Services Revenue	$49,164	$53,148	$54,479	-7.5%
Total Operating Expenses	**$3,583,136**	$1,008,026	$2,075,137	+255%
Crypto Costs	$3,403,207	$718,511	$1,657	+373%
Compensation & Benefits	$83,164	$102,042	$139,049	-18.5%
Impairment (Goodwill/Intangible)	$0	$60,499	$1,822,089	N/A
Operating Loss	**$(92,916)**	$(227,890)	$(2,018,913)	-59%
Net Loss	$(103,447)	$(225,812)	$(1,989,934)	-54%
Net Loss Attributable to Bakkt	$(46,659)	$(74,854)	$(578,105)	-37%
Basic/Diluted EPS	**$(7.97)**	$(21.01)	$(203.08)	N/A

Analysis:

• Revenue Growth: Total revenue surged by nearly $2.7 billion, driven almost exclusively by increased trading volume in Crypto Services.
• Margins: Crypto revenues are reported on a gross basis, but “Crypto costs” (the cost of acquiring the asset) track closely with revenue. The spread between Crypto Revenue ($3,441M) and Crypto Costs ($3,403M) indicates a gross trading margin of approximately $38 million for the segment.
• Expense Control: Compensation and benefits expenses decreased by 18.5% due to restructuring and headcount reductions.
• Impairment: Unlike previous years, 2024 saw no goodwill or intangible asset impairments, significantly aiding the reduction in operating loss.

Balance Sheet Analysis

Metric	Dec 31, 2024 (in $thousands)	Dec 31, 2023 (in$ thousands)
Total Assets	$269,377	$265,311
Cash and Cash Equivalents	$39,049	$52,882
Restricted Cash	$24,889	$31,838
Customer Funds	$88,566	$32,925
Goodwill	$68,001	$68,001
Total Liabilities	**$206,524**	$129,597
Customer Funds Payable	$88,566	$32,925
Warrant Liability	$46,923	$2,356
Total Stockholders’ Equity	**$33,894**	$48,282
Accumulated Deficit	$(797,960)	$(751,301)

Analysis:

• Liquidity: Cash and cash equivalents decreased to $39.0 million. Restricted cash also declined due to lower regulatory capital requirements for Bakkt Trust.
• Customer Funds: Both assets and liabilities for customer funds increased significantly to $88.6 million, reflecting growing customer deposits.
• Warrant Liability: This liability jumped to $46.9 million due to the issuance of new Class 1 and Class 2 warrants in concurrent offerings.
• Going Concern: The company has identified conditions raising substantial doubt about its ability to continue as a going concern, specifically citing the loss of Webull revenue in mid-2025.

Cash Flow Analysis

Metric	2024 (in $thousands)	2023 (in$ thousands)	2022 (in $ thousands)
Net Cash Used in Operating Activities	**$(21,203)**	$(60,697)	$(117,597)
Net Cash Provided by Investing Activities	$14,134	$65,970	$(171,961)
Net Cash Provided by (Used in) Financing	$43,818	$(2,634)	$(2,584)

Analysis:

• Operating Cash Flow: Net cash burn improved significantly, dropping to $21.2 million used, driven by a lower net loss and favorable changes in working capital.
• Investing Activities: Provided $14.1 million, largely from the sale of available-for-sale securities ($35.2 million), offset by purchases and capital expenditures.
• Financing Activities: Provided $43.8 million, primarily from the proceeds of the Concurrent Offerings ($46.5 million).

Board of Directors and Leadership Team

Leadership Team

• Andrew Main: Chief Executive Officer and President. Appointed March 2024, succeeded Gavin Michael. Continues to serve on the Board.
• Akshay Naheta: Co-Chief Executive Officer (Effective March 21, 2025). Appointed in connection with the DTR Cooperation Agreement. Also serves on the Board.
• Karen Alexander: Chief Financial Officer. Also served as principal accounting officer for a period in 2024.
• Joe Henderson: Chief Accounting Officer. Appointed July 8, 2024.

Board of Directors

• Andrew Main: Director.
• Akshay Naheta: Director (Effective March 21, 2025).
• David C. Clifton: Director.
• Sean Collins: Director.
• Michelle J. Goldberg: Director.
• Colleen Brown: Director.
• Gordon Watson: Director.
• De’Ana Dow: Director.
• Jill Simeone: Director.

Subsidiaries, Associates, Joint Ventures

Bakkt operates through several key subsidiaries, each serving distinct functions within the corporate structure.

1. Bakkt Crypto Solutions, LLC (formerly Apex Crypto)

• Ownership: 100%
• Function: Operates the core retail-facing crypto brokerage and trading platform. Holds the BitLicense and money transmitter licenses.
• Performance: Drives the majority of the $3.4 billion Crypto Services revenue.

2. Bakkt Trust Company LLC

• Ownership: 100% (Pending sale to ICE)
• Function: Limited purpose trust company supervised by NYDFS for qualified custody.
• Status: Suspended customer activities in Nov 2024; agreed to sell to ICE in March 2025.

3. Bridge2 Solutions, LLC

• Ownership: 100% (Indirect via Opco)
• Function: Operates the loyalty redemption business in the U.S..
• Status: Under strategic review for potential sale or wind-down.

4. BakktX ECN, LLC

• Ownership: Wholly owned
• Function: Formed in 2024 to launch the institutionally-focused electronic communications network.

5. Bakkt Opco Holdings, LLC (Opco)

• Ownership: 48% held by Bakkt Holdings, Inc.; 52% held by noncontrolling interests (as of Dec 31, 2024).
• Function: The operating subsidiary holding substantially all assets and business.

Physical Properties

Bakkt leases all its facilities and does not own real estate.

• Alpharetta, Georgia: Corporate headquarters. Lease expires October 2032. Also leases a call center facility with expiration in April 2026.
• Scottsdale, Arizona: Principal customer service center. Lease expires September 2030.
• New York, New York: Satellite corporate office. Lease expires January 2026. Note: In Dec 2024, Bakkt signed an agreement to assign this lease to a third party.

Segment-wise Performance

Crypto Services Performance

• Revenue (2024): $3,441.1 million vs. $727.0 million (2023).
• YoY Movement: +373.3%.
• Drivers: Significant increase in notional traded volume, which reached $4,183.2 million in 2024 compared to $1,531.7 million in 2023. The acquisition of Apex Crypto (now Bakkt Crypto) was the primary catalyst for this volume explosion.

Loyalty Services Performance

• Revenue (2024): $49.2 million vs. $53.1 million (2023).
• YoY Movement: -7.5%.
• Drivers: Reduced volume-based service revenue, despite an increase in transaction volume. This segment has been deprioritized as the company pivots to crypto.

Founders

Bakkt was founded in 2018 by Intercontinental Exchange, Inc. (ICE). ICE is a leading operator of global exchanges and clearing houses (including the NYSE). ICE created Bakkt with the vision of building a regulated, institutional-grade ecosystem for digital assets, leveraging ICE’s infrastructure and expertise in financial markets.

Shareholding Pattern

• Class A Common Stock: 6,510,885 shares issued and outstanding (as of Dec 31, 2024). Entitles holders to one vote per share and economic rights.
• Class V Common Stock: 7,178,303 shares issued and outstanding (as of Dec 31, 2024). These shares have no economic value but entitle the holder to one vote per share. They are paired with Opco Common Units.
• Noncontrolling Interest: Holds 52% of Opco Common Units.
• Major Shareholder: Intercontinental Exchange (ICE) retains significant ownership and voting power. A Voting Agreement limits ICE to voting only 30% of its voting power until its ownership falls below a majority.

Parent

While Bakkt Holdings, Inc. is a publicly traded company, Intercontinental Exchange, Inc. (ICE) remains a significant stockholder and former parent.

• Relationship: ICE exerts significant influence over the election of directors and corporate policies.
• Financial Ties: ICE provided a $40 million Revolving Credit Facility to Bakkt in August 2024. ICE also agreed to purchase Bakkt Trust in March 2025.
• Conflicts: The Certificate of Incorporation does not limit ICE’s ability to compete with Bakkt.

Investments and Capital Expenditure Plans

• Capital Expenditures (2024): $3.1 million, primarily for capitalized internal-use software development costs.
• Strategic Investments:
  • BakktX: Developing advanced trading infrastructure for institutional clients.
  • DTR Partnership: Investing in the integration of DTR’s payment processing technology.
• Acquisitions: In 2023, invested $55.0 million cash (plus stock) to acquire Apex Crypto. No new acquisitions were executed in 2024, but the DTR agreement includes a Call Option to acquire DTR Equity.

Future Strategy

Bakkt’s management has outlined a focused strategy to transition into a pure-play crypto infrastructure provider:

1. Crypto-Native Reorientation: Exiting the loyalty business and Bakkt Trust to focus resources on scalable crypto trading and payment products.
2. Institutional Expansion: Launching BakktX, an institutional ECN, to offer high-performance trading and “Liquidity As A Service” to other providers.
3. Global Payments: Leveraging the DTR Cooperation Agreement to enable stablecoin-based payment processing services globally.
4. Cost Rationalization: Implementing cost reductions, including reductions in force and discretionary spending cuts, to preserve liquidity and extend the runway.
5. Client Activation: Focusing on activating existing clients and supporting their marketing campaigns to drive end-user acquisition.

Key Strengths

• Regulated Infrastructure: Bakkt holds a coveted BitLicense from NYDFS and money transmitter licenses across the U.S., positioning it as a compliant partner for financial institutions.
• Institutional Heritage: Born from ICE, the platform is built with institutional-grade security, compliance, and technology standards.
• B2B2C Model: The partner-led distribution strategy allows access to millions of potential end-users without the high cost of direct consumer acquisition.
• Technology Stack: Proprietary trading and matching technology (BakktX) and integrated custody solutions provide a robust technical foundation.

Key Challenges and Risks

• Going Concern: Management has identified conditions raising substantial doubt about the ability to continue as a going concern for at least 12 months, specifically due to the impending loss of the Webull contract.
• Client Concentration: Revenue is highly concentrated. Webull accounted for 74% of Crypto Services revenue in 2024 and has notified Bakkt it will not renew its agreement in June 2025. The loss of this client poses a material risk to revenue.
• Regulatory Uncertainty: The crypto regulatory environment remains evolving and uncertain. Changes in laws or enforcement actions by the SEC (e.g., regarding crypto as securities) could impact operations.
• Market Volatility: The business is heavily dependent on crypto market sentiment and trading volumes, which are inherently volatile.
• Financial Losses: The company has a history of net losses ($103.5 million in 2024) and has not yet achieved positive cash flow from operations.

Conclusion and Strategic Outlook

Bakkt Holdings, Inc. stands at a critical juncture in its corporate history. Having successfully scaled its crypto services revenue to nearly $3.5 billion in 2024 through the integration of Bakkt Crypto, the company has demonstrated the viability of its B2B2C model in the digital asset space. However, the impending departure of its largest client, Webull, and the continued financial losses present significant hurdles.

The strategic response—divesting non-core assets like Bakkt Trust and the Loyalty business, while doubling down on institutional trading via BakktX and global payments via DTR—reflects a decisive pivot toward higher-growth, scalable crypto infrastructure. The success of Bakkt in the coming years will depend on its ability to execute this transition, replace lost revenue through new institutional and payment channels, and manage its liquidity position effectively in a volatile market.

Official Site: https://bakkt.com

FAQ Section

1. What was Bakkt’s total revenue for the fiscal year 2024?

Bakkt reported a total revenue of $3,490.2 million for the fiscal year ended December 31, 2024. The vast majority of this revenue, $3,441.1 million, was generated from its Crypto Services segment.

2. What is the primary business model of Bakkt?

Bakkt operates a “Business-to-Business-to-Consumer” (B2B2C) model. Instead of marketing directly to consumers, Bakkt provides technology and infrastructure to partners—such as banks, fintechs, and merchants—who then offer crypto and loyalty experiences to their own customers.

3. Which major client represents a significant portion of Bakkt’s revenue?

Webull is Bakkt’s largest client, representing approximately 74% of the Crypto Services revenue in 2024. However, Webull has notified Bakkt that it will not renew its agreement when the current term ends on June 14, 2025.

4. What recent strategic changes has Bakkt announced regarding its business lines?

In late 2024 and early 2025, Bakkt announced plans to exit its Loyalty Services business and sold its institutional custody unit, Bakkt Trust, to ICE. The company is refocusing entirely on scalable crypto trading, institutional services (BakktX), and global payments.

5. Is Bakkt a profitable company?

No, Bakkt reported a net loss of $103.5 million for the year ended December 31, 2024. The company has identified conditions that raise substantial doubt about its ability to continue as a going concern due to expected revenue losses and cash flow needs.

Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.