Bakkt Sells Loyalty Services for $11 Million, Plans $75 Million Equity Raise
Bakkt Holdings Inc. sold its loyalty services for $11 million to Project Labrador Holdco, refocusing on becoming a crypto infrastructure provider. The company announced a $75 million equity raise, causing its shares to drop significantly.
- Shares fell nearly 5% to $17.17 and dropped 27.78% in after-hours trading to $12.40.
- The public offering includes over 6.75 million shares priced at $10 each, with potential gross proceeds exceeding $75 million.
- Funds will be allocated to Bitcoin acquisitions and enhancing operational capital.
- Preliminary Q2 earnings indicate projected revenues between $577 million and $579 million, a 13% year-over-year increase.
- Crypto-related revenue is expected to reach $568–569 million, up over 14% from Q2 2024.
- Investor concerns persist due to the loss of major clients like Bank of America and Webull.
- Plans to raise up to $1 billion to purchase Bitcoin include various financial instruments.
Bakkt aims to enhance its focus on core crypto offerings and stablecoin payment infrastructure, leveraging AI to improve digital asset services.