Bakkt Holdings, Inc. Class A (BKKT) AI Stock Analysis

• Market Cap: $223.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.84
• Revenue Growth: 111.83%
• EPS Growth: 73.52%
• Country: US
• Employees: 559
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -2.16
• Shares Outstanding: 15,934,137
• 10 Day Avg. Volume: 1,025,124
• 30 Day Avg. Volume: 1,255,308
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $13.50
• Price Target Upside: 33.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $8.50 ▼(-15.92% Downside)

Bakkt Holdings, Inc. faces significant financial and operational challenges, with negative profitability and cash flow issues being the most critical factors. Technical indicators show bearish momentum, and valuation metrics are weak. While strategic initiatives and corporate events offer some positive outlook, they are overshadowed by immediate financial concerns.

Positive Factors

Strategic Realignment

The strategic pivot to focus on crypto infrastructure can enhance Bakkt's core offerings and streamline operations, potentially leading to improved long-term value creation.

Capital Position

Strengthened capital position supports growth initiatives and provides financial flexibility, which is critical for sustaining operations and investing in future opportunities.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which are crucial for long-term business sustainability and competitiveness.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources and limit flexibility, posing risks to long-term stability if not managed effectively.

Cash Flow Challenges

Negative cash flows highlight operational inefficiencies and may hinder the company's ability to invest in growth and manage debt obligations over time.

Decline in Trading Volumes

A decline in trading volumes can impact revenue generation and market competitiveness, posing challenges to sustaining growth in the core business segment.

Bakkt Holdings, Inc. Class A Business Overview & Revenue Model

Company Description

Bakkt Holdings, Inc. operates a digital asset platform. The company's platform enables consumers to buy, sell, convert, and spend digital assets. Its customers include merchants, retailers, and financial institutions. Bakkt Holdings, Inc. has a strategic alliance with the Global Payments to collaborate on use cases starting with enabling cryptocurrency redemption in customer loyalty programs offered by bankcard clients, as well as expanding its banking-as-a-service offerings to include consumer access to cryptocurrency. The company was formerly known as VPC Impact Acquisition Holdings and changed its name to Bakkt Holdings, Inc. The company was founded in 2018 and is headquartered in Alpharetta, Georgia. Bakkt Holdings, Inc. is a subsidiary of Intercontinental Exchange Holdings, Inc.

How the Company Makes Money

Bakkt Holdings, Inc. generates revenue primarily through its digital asset management and exchange platform. Key revenue streams include transaction fees from trading digital assets, such as cryptocurrencies, as well as fees from institutional clients who use Bakkt's custody and storage services. The company also monetizes its loyalty program management by facilitating the conversion of loyalty points and gift cards into cash or other digital assets. Strategic partnerships with financial institutions and retailers enhance Bakkt's service offerings and expand its user base, contributing to its earnings.

Bakkt Holdings, Inc. Class A Financial Statement Overview

Summary

Bakkt Holdings, Inc. shows revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet indicates moderate stability, but rising leverage and negative cash flows are concerning.

Income Statement

Bakkt Holdings, Inc. shows a mixed performance in its income statement. The company has experienced significant revenue growth, particularly in the TTM period, indicating a positive trajectory. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved significantly in the TTM period, but the company still struggles to achieve positive net income.

Balance Sheet

The balance sheet reveals a moderate level of financial stability. The debt-to-equity ratio has increased in the TTM period, indicating rising leverage, which could pose a risk if not managed carefully. The return on equity remains negative, highlighting profitability challenges. However, the equity ratio suggests a reasonable level of equity financing relative to total assets, providing some stability.

Cash Flow

Cash flow analysis indicates significant challenges for Bakkt Holdings, Inc. The company has negative operating and free cash flows, with a declining free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow difficulties. Although the free cash flow to net income ratio is close to 1, indicating some alignment, the overall cash flow situation remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.78B	3.49B	780.14M	54.57M	37.27M	28.50M
Gross Profit	1.93B	87.01M	61.63M	-113.04M	-137.83M	-30.14M
EBITDA	-50.48M	-83.36M	-116.09M	-153.67M	-134.75M	-42.30M
Net Income	-29.10M	-46.66M	-74.85M	-578.11M	-242.66M	-79.61M
Balance Sheet
Total Assets	190.14M	269.38M	966.87M	455.50M	2.41B	468.38M
Cash, Cash Equivalents and Short-Term Investments	64.83M	127.61M	70.28M	239.39M	391.40M	77.18M
Total Debt	39.33M	23.54M	27.16M	26.42M	11.26M	2.30M
Total Liabilities	132.31M	206.52M	831.15M	119.43M	108.40M	58.59M
Stockholders Equity	35.29M	33.89M	48.28M	96.26M	479.80M	409.78M
Cash Flow
Free Cash Flow	-87.67M	-24.29M	-70.13M	-148.14M	-149.99M	-51.51M
Operating Cash Flow	-89.59M	-21.20M	-60.70M	-117.60M	-134.30M	-30.94M
Investing Cash Flow	16.51M	14.13M	65.97M	-171.96M	16.92M	-7.93M
Financing Cash Flow	20.89M	43.82M	-2.63M	-2.58M	256.83M	37.49M

Bakkt Holdings, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKKT, the sentiment is Neutral. The current price of 10.11 is above the 20-day moving average (MA) of 9.10, below the 50-day MA of 12.35, and below the 200-day MA of 15.12, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 76.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKKT.

Bakkt Holdings, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	2.44B	25.22	12.95%	―	13.02%	-2.57%
BAND	62 Neutral	551.28M	-52.76	-2.60%	―	14.51%	58.41%
AVPT	62 Neutral	3.27B	-314.17	-1.90%	―	24.41%	40.20%
JG	59 Neutral	56.73M	-65.60	-10.37%	―	18.99%	77.96%
STNE	56 Neutral	5.16B	-28.43	-10.95%	―	-20.82%	-154.29%
BKKT	43 Neutral	$223.49M	―	-70.04%	―	111.83%	73.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Bakkt Holdings, Inc. Class A Corporate Events

Bakkt Faces Revenue Impact as Public Platform Exits

Bakkt Holdings, Inc. announced several operational updates, including the acquisition of a 30% stake in Marusho Hotta Co., Ltd., with Phillip Lord becoming CEO of MHT. An extraordinary general meeting of MHT’s shareholders is expected in October 2025 to discuss changes in corporate purpose and stock issuance. On August 26, 2025, Public Platform LLC notified Bakkt of its intent to offboard customers by October 31, 2025, impacting a significant portion of Bakkt’s crypto services revenue. Additionally, Bakkt is finalizing the sale of its loyalty and travel redemption business by Q3 2025 and has signed a nonbinding letter of intent with ICE Digital Trust, LLC for digital asset custody services.

Bakkt Holdings Approves Increase in Authorized Shares

On August 6, 2025, Bakkt Holdings, Inc. held a special meeting where stockholders approved an amendment to increase the number of authorized Class A Common Stock shares from 60 million to 560 million. Additionally, stockholders approved the potential adjournment of the meeting to solicit more proxies if needed, reflecting strategic moves to enhance the company’s capital structure and flexibility.

Bakkt Holdings Acquires Stake in MarushoHotta

On July 31, 2025, Bakkt Crypto Solutions, a subsidiary of Bakkt Holdings, Inc., entered into a Commercial Agreement with Distributed Technologies Research Global Ltd. (DTR) to integrate Bakkt’s financial transaction processing and cryptocurrency trading solutions with DTR’s stablecoin-powered global payment technology. This agreement includes a non-exclusive license for both parties to use each other’s technologies and sets a three-year initial term. On August 6, 2025, Bakkt announced a share purchase agreement with RIZAP Group, Inc. to acquire approximately 30% of MarushoHotta Co., Ltd., a Tokyo-listed company. This acquisition is part of Bakkt’s multinational bitcoin treasury strategy and will make Bakkt the largest shareholder of MarushoHotta, which will be renamed bitcoin.jp, subject to shareholder approval.

Bakkt Holdings Announces $75 Million Stock Offering

On July 28, 2025, Bakkt Holdings, Inc. announced an underwriting agreement to sell 6,753,627 shares of Class A common stock and pre-funded warrants, raising approximately $75 million. The offering, which closed on July 30, 2025, is intended to fund Bitcoin and digital asset purchases, working capital, and general corporate purposes. Concurrently, Bakkt terminated a $40 million credit facility with Intercontinental Exchange Holdings, Inc., and approved a $74.5 million stock option award for employees, subject to stockholder approval.

Bakkt Holdings Sells Loyalty Business to Focus on Crypto

On July 23, 2025, Bakkt Holdings, Inc. announced a definitive agreement to sell its Loyalty business to Project Labrador Holdco, LLC, a subsidiary of Roman DBDR Technology Advisors, Inc., as part of its strategic realignment to focus solely on its core crypto offerings and stablecoin payments infrastructure. The transaction, expected to close in the third quarter of 2025, will allow Bakkt to streamline operations and dedicate resources to enhancing its crypto services, aiming for long-term value creation for customers and shareholders.

Bakkt Holdings Reschedules 2025 Annual Stockholders Meeting

On June 10, 2025, Bakkt Holdings, Inc. adjourned its 2025 Annual Meeting of Stockholders to allow more time for shareholders to review updates to the company’s investment policy, which includes allocating capital into Bitcoin and other digital assets. The meeting is rescheduled for June 17, 2025, and will remain a virtual event, with no changes to the proposals to be voted on. Stockholders who have already voted do not need to take any further action unless they wish to change their vote.

Bakkt Holdings Considers Increasing Authorized Class A Shares

Bakkt Holdings, Inc. has updated its investment policy to allow capital allocation into Bitcoin and other digital assets, although no purchases have been made yet. The company is also considering increasing its authorized shares of Class A Common Stock to enhance flexibility for future transactions, which could potentially dilute current stockholders’ interests.