Important Bitcoin signals: Exchange Bakkt publicly raised 75 million USD, increasing the position to buy BTC and encryption assets.

Recently, Bakkt announced a significant strategic adjustment: selling its loyalty business and raising $75 million through an initial public offering to increase the position in Bitcoin (BTC) and other digital assets. This initiative marks Bakkt's full focus on the Crypto Assets market, striving to become a streamlined encryption infrastructure company. Bakkt is an American company launched by the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), in 2018, focusing on digital asset custody, trading, and infrastructure services, primarily targeting institutional investors. The platform provides trading and storage for Bitcoin and other Crypto Assets, while also offering merchants solutions to accept encryption payments.

Today (29th) in the Asian late session, Bitcoin is currently reported at around 119,130 USD, with bulls attempting to rebound to the peak of 123,000 USD.

(Source: Gate)

Bakkt Sells Loyalty Business: A Clear Signal of Strategic Focus

On the 28th, Bakkt announced the sale of its loyalty business for $11 million. This business is expected to generate revenue of only about $9 million to $10 million in the second quarter of 2025, compared to the estimated revenue of $568 million to $569 million from the company's other crypto assets-related businesses, which is a relatively small proportion. The huge gap between the two businesses provides a direct basis for Bakkt's strategic focus.

Bakkt's loyalty system includes exchange options for travel, gift cards, physical goods, Apple products, etc. Customers can let users convert their existing points into goods or Crypto Assets, such as Wyndham Rewards which can convert hotel points into cash, gift cards, and further consumption through the Bakkt App. Although this business has a certain level of innovation, its strategic importance has clearly diminished significantly compared to Bakkt's grand vision in the Crypto Assets domain.

The company's president and co-CEO Andy Main stated in an official press release: "As the loyalty business is up for sale, Bakkt is entering a new phase of becoming a streamlined encryption infrastructure company." This statement clarifies that Bakkt will focus all its resources and energy on the core business of digital assets in the future.

Initial Public Offering of 75 million USD: Convert cash to Bitcoin

After selling the department, Bakkt simultaneously announced an initial public offering plan, issuing Class A common stock and pre-paid warrants, with an expected fundraising of $75 million. The company stated that the funds raised, in addition to operational turnover, will be used for "purchasing Bitcoin and other digital assets." This reflects Bakkt's confidence in the long-term value of Bitcoin, but it also tightly binds the company's risks to the volatility of the crypto market.

This decision aligns with the trend in recent years of many publicly listed companies incorporating Bitcoin into their balance sheets, such as MicroStrategy. These companies believe that Bitcoin can serve not only as a reserve asset but also bring additional growth potential for the company. However, allocating a significant amount of operating capital into highly volatile Crypto Assets also means that the company will face greater market risks.

Focus After Bakkt: Goals and Challenges

The focus of Bakkt is to accelerate the deployment of custody, trading, and stablecoin solutions. This shows that Bakkt aims to achieve a leading position in the institutional-level digital asset services sector. Its future development will depend on whether it can successfully verify that Bitcoin reserves can form a positive cycle with the revenues from crypto services.

Next, Bakkt will test whether traditional financial background companies can withstand market volatility after fully embracing encryption. This is not only a test of Bakkt's own strategy but also an important observation point for the transformation of the entire traditional financial institution into the digital asset field. If Bakkt can successfully demonstrate the feasibility of its model, it will provide valuable experience for more traditional financial institutions to enter the crypto market.

Bakkt's sale of its loyalty business and its move to publicly raise funds to increase the position in Bitcoin is a clear signal of its full focus on the Crypto Assets market. This strategic adjustment demonstrates the active layout and transformation determination of traditional financial institutions in the digital asset field. Although there are risks associated with investing operating capital into the highly volatile crypto assets, Bakkt clearly has confidence in the long-term value of Bitcoin and the development potential of the crypto market. Whether this transformation will succeed will not only affect Bakkt's future but also provide an important case for the integration of traditional finance and Crypto Assets.