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

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BKKT

Bakkt Holdings, Inc. Class A

(NYSE:BKKT)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$19.50
▼(-50.96% Downside)
Bakkt Holdings, Inc. faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical analysis indicates overbought conditions, suggesting caution. Valuation metrics are weak due to ongoing losses. While strategic initiatives and capital raising are positive, short-term challenges remain.
Positive Factors
Strategic Realignment
The strategic realignment to focus on crypto infrastructure strengthens Bakkt's core business model, potentially enhancing long-term competitiveness and market position.
Revenue Growth
Consistent revenue growth indicates expanding market reach and product adoption, supporting sustainable business operations and potential future profitability.
Strong Capital Position
The capital raise strengthens Bakkt's balance sheet, providing financial flexibility to invest in growth initiatives and withstand market fluctuations.
Negative Factors
Profitability Challenges
Ongoing net losses highlight profitability challenges, which can hinder Bakkt's ability to sustain operations and invest in growth without external funding.
Decline in Crypto Trading Volumes
A decline in trading volumes may affect revenue from transaction fees, impacting Bakkt's core revenue stream and long-term financial health.
Cash Flow Issues
Negative cash flows indicate potential liquidity issues, which could limit Bakkt's ability to fund operations and growth, posing a risk to financial stability.

Bakkt Holdings, Inc. Class A (BKKT) vs. SPDR S&P 500 ETF (SPY)

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

Company DescriptionBakkt Holdings, Inc. Class A (BKKT) is a financial technology company specializing in digital assets, cryptocurrency, and blockchain solutions. Founded in 2018, Bakkt operates in the fintech sector, providing a platform that enables consumers and institutions to buy, sell, store, and spend digital assets seamlessly. The company’s core products include a digital wallet for cryptocurrency transactions, a trading platform for institutional investors, and various solutions for merchants to accept digital assets as payment.
How the Company Makes MoneyBakkt generates revenue through multiple streams, primarily by facilitating transactions on its platform, charging fees for trading and storage services, and offering value-added services to institutional clients. Key revenue sources include transaction fees from buying and selling digital assets, subscription fees for premium features of its trading platform, and partnerships with major financial institutions and payment processors that integrate Bakkt's technology. Additionally, Bakkt may benefit from increased adoption of digital currencies and blockchain technology, enhancing its earnings potential through strategic alliances and expanding its user base.

Bakkt Holdings, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
Bakkt's earnings call presented a strategic pivot towards becoming a pure-play crypto infrastructure company, supported by successful divestitures and new capital, alongside new product launches and strategic initiatives. However, the sequential decline in trading volumes and revenue, combined with a net loss, shows challenges in the short term.
Q2-2025 Updates
Positive Updates
Successful Strategic Realignment
Bakkt completed the sale of Bakkt Trust Company to Intercontinental Exchange and entered into a definitive agreement to divest the Loyalty business, marking a pivot to focus entirely on crypto infrastructure.
Strong Capital Position
Bakkt successfully closed a $75 million SEC registered offering of common stock and warrants, significantly recapitalizing the balance sheet to support growth initiatives.
New Institutional Clients
Bakkt onboarded three new institutional clients: Longbridge, AscendEX, and BTSE.
Launch of Bakkt Agent and Bitcoin Treasury Strategy
The Bakkt Agent, an AI-powered global transfers product, is in private beta. Bakkt initiated a Bitcoin treasury strategy with the acquisition of a 30% stake in Marusho Hotta Co Ltd.
Revenue Growth
Total revenue for Q2 2025 was $577.9 million, up 13.3% year-over-year.
Negative Updates
Decline in Crypto Trading Volumes
Crypto trading volumes declined sequentially in Q2 2025, impacted by regulatory uncertainty and macroeconomic pressures.
Decreased Revenue from Loyalty Segment
Net Loyalty revenues were $9.8 million, down 23.3% year-over-year.
Net Loss
Bakkt reported a net loss of $30.2 million for the quarter, though this was an improvement year-over-year.
Sequential Revenue Decline
Total revenue declined 46.2% sequentially, reflecting a moderation after a record-breaking Q4 2024 performance.
Company Guidance
During Bakkt's Second Quarter 2025 Earnings Call, the company outlined its strategic realignment into a pure-play crypto infrastructure firm, emphasizing the divestiture of its Custody business to Intercontinental Exchange and the pending sale of its Loyalty business for $11 million, expected to close in Q3. Bakkt highlighted the integration of Distributed Technologies Research's stablecoin and AI payment infrastructure into its platform, alongside a successful $75 million SEC-registered offering to support growth initiatives. The company reported a decline in crypto trading volumes, with total notional volume at $733 million and total revenues of $577.9 million, reflecting a 13.3% year-over-year increase. Bakkt's adjusted EBITDA loss for Q2 was $12.6 million, showing a 29.9% improvement year-over-year. The call also detailed Bakkt's focus on expanding its Brokerage-in-a-box solution and launching Bakkt Agent, an AI-powered global transfers product.

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
45
Neutral
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
40
Negative
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
35
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.78B3.49B780.14M54.57M37.27M28.50M
Gross Profit1.93B87.01M61.63M-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 Assets190.14M269.38M966.87M455.50M2.41B468.38M
Cash, Cash Equivalents and Short-Term Investments64.83M127.61M70.28M239.39M391.40M77.18M
Total Debt39.33M23.54M27.16M26.42M11.26M2.30M
Total Liabilities132.31M206.52M831.15M119.43M108.40M58.59M
Stockholders Equity35.29M33.89M48.28M96.26M479.80M409.78M
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 Flow16.51M14.13M65.97M-171.96M16.92M-7.93M
Financing Cash Flow20.89M43.82M-2.63M-2.58M256.83M37.49M

Bakkt Holdings, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.76
Price Trends
50DMA
14.63
Positive
100DMA
15.00
Positive
200DMA
15.24
Positive
Market Momentum
MACD
7.99
Negative
RSI
77.41
Negative
STOCH
70.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKKT, the sentiment is Positive. The current price of 39.76 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 14.63, and above the 200-day MA of 15.24, indicating a bullish trend. The MACD of 7.99 indicates Negative momentum. The RSI at 77.41 is Negative, neither overbought nor oversold. The STOCH value of 70.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKKT.

Bakkt Holdings, Inc. Class A Risk Analysis

Bakkt Holdings, Inc. Class A disclosed 77 risk factors in its most recent earnings report. Bakkt Holdings, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bakkt Holdings, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$306.56M46.6219.65%27.84%-13.78%
69
Neutral
$418.55M9.0936.15%-4.19%-3.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
$51.15M-9.11%18.99%77.96%
54
Neutral
$4.43B-81.98%20.48%-44.22%
51
Neutral
$487.32M19.533.37%7.13%23.63%
43
Neutral
$899.49M-70.04%111.83%73.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKKT
Bakkt Holdings, Inc. Class A
39.76
29.94
304.89%
IMXI
International Money Express
14.89
-2.52
-14.47%
JG
Aurora Mobile
8.66
2.05
31.01%
DAVA
Endava
8.94
-14.78
-62.31%
PAYS
PaySign
5.65
2.07
57.82%
CLBT
Cellebrite DI
18.99
1.25
7.05%

Bakkt Holdings, Inc. Class A Corporate Events

Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Bakkt Faces Revenue Impact as Public Platform Exits
Negative
Aug 29, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Bakkt Holdings Approves Increase in Authorized Shares
Neutral
Aug 8, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Bakkt Holdings Acquires Stake in MarushoHotta
Positive
Aug 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Bakkt Holdings Announces $75 Million Stock Offering
Neutral
Jul 30, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Bakkt Holdings Sells Loyalty Business to Focus on Crypto
Neutral
Jul 28, 2025

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.

Shareholder Meetings
Bakkt Holdings Reschedules 2025 Annual Stockholders Meeting
Neutral
Jun 10, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Bakkt Holdings Considers Increasing Authorized Class A Shares
Neutral
Jun 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025