Bakkt Plans Loyalty Unit Sale, Focuses on Crypto Infrastructure

Bakkt Holdings is divesting its Loyalty business to Project Labrador Holdco for $11 million in cash, with the deal expected to close in the third quarter of 2025, as part of its strategy to become a focused crypto infrastructure company. The sale includes adjustments for working capital and debt, along with a short-term restricted cash loan to aid the transaction. This move accompanies Bakkt's plans for a public offering to raise capital for acquiring digital assets and supporting operations. Despite these strategic efforts, Bakkt's shares have fallen significantly, dropping over 19% in after-hours trading following the announcement, reflecting investor concern. The company faces a class-action lawsuit alleging it misled shareholders about its financial reliance on major clients Webull and Bank of America, whose contracts recently expired. Analyst sentiment remains cautious, with a consensus 'Hold' rating and an average price target implying a potential downside, though some valuation metrics suggest notable long-term upside potential.