1. It's like **Coinbase**, but also a universal wallet for your loyalty points and gift cards, allowing you to manage and convert them alongside your crypto.

2. Think of it as **PayPal or Venmo**, but designed to manage and spend all your digital assets, from cryptocurrencies like Bitcoin and Ethereum to your airline miles and gift cards.

• Cryptocurrency Trading & Management Platform: A service enabling users to buy, sell, and hold various cryptocurrencies.
• Institutional Digital Asset Custody: A service providing secure and regulated storage solutions for institutional clients' digital assets.
• Loyalty & Rewards Program Services: A service helping businesses modernize loyalty programs by enabling the conversion of points into digital assets or cash, and facilitating digital asset redemption.

Bakkt (symbol: BKKT) primarily sells its digital asset technology, infrastructure, and custody solutions to other companies, enabling them to offer cryptocurrency services to their own customers. Its business model has a strong focus on enterprise and B2B partnerships rather than direct-to-consumer sales for its primary revenue drivers.

Its major customers and strategic partners include:

• Fiserv (symbol: FI): Bakkt partners with Fiserv, a global leader in financial services technology. This partnership enables thousands of banks and credit unions that use Fiserv's platforms to offer cryptocurrency buying, selling, and holding capabilities to their customers. Bakkt provides the underlying crypto trading and custody infrastructure for these financial institutions.
• Mastercard (symbol: MA): Bakkt has a strategic partnership with Mastercard, a global payments technology company. This collaboration aims to integrate crypto solutions into Mastercard's network, allowing financial institutions, fintechs, and merchants leveraging Mastercard's infrastructure to offer crypto-related services (such as crypto rewards and crypto debit cards) to their respective customer bases.

• Visa Inc. (V)
• Mastercard Incorporated (MA)

Akshay Naheta, Chief Executive Officer

Akshay Naheta was appointed Bakkt's sole Chief Executive Officer and President in August 2025. Prior to this, in January 2023, he founded Distributed Technologies Research (DTR), a company focused on programmable finance, and Bakkt and DTR entered into a cooperation agreement in March 2025. Between January 2017 and May 2022, Naheta held various executive roles at Softbank Group, including Senior Vice President, Investments, where he oversaw significant technology investments such as ARM, Auto1, and Nvidia. In 2011, he founded Knight Assets & Co., an investment management firm. He began his professional career at Deutsche Bank AG, serving as Head of Principal Strategies from 2005 to 2010, responsible for managing proprietary trading and structured transactions across global asset classes.

Karen Alexander, Chief Financial Officer

Karen Alexander has served as Bakkt's Chief Financial Officer since August 2022. She initially joined Bakkt in June 2021 as the Chief Accounting Officer. Before joining Bakkt, Ms. Alexander worked at GE Capital from October 2004 to April 2021, holding various finance and accounting roles, most recently as Global Technical Controller from January 2017 to April 2021. Her career began as an external auditor with Arthur Andersen LLP and Ernst & Young LLP.

Nicholas Baes, Chief Operating Officer

Nicholas Baes is Bakkt's Chief Operating Officer. He brings over 20 years of experience in the TradFi, FinTech, and crypto market segments, having built platforms across various areas of capital markets. Throughout his career, Mr. Baes has held leadership roles at both public and private firms, including Intercontinental Exchange Group and PEAK6 Investments.

Marc D'Annunzio, General Counsel and Secretary

Marc D'Annunzio has served as General Counsel and Secretary of Bakkt since its public listing. Prior to this role, he was General Counsel and Secretary for Opco since May 2019. Mr. D'Annunzio joined Opco from Alston & Bird LLP, an international law firm, where he practiced in its Payments group.

Ankit Khemka, Chief Product Officer

Ankit Khemka, Chief Product Officer, is an executive with extensive experience in scaling hyper-growth technology companies globally. He previously served as Global GM and Head of Marketing at Revolut, where he led the company's growth, brand, and global expansion strategies. Mr. Khemka also held the position of Chief Marketing & Product Officer at Kape Technologies, driving product strategy and growth for brands like ExpressVPN, and worked with Rocket Internet, leading growth ventures across multiple regions.

The key risks to Bakkt's business operations include its historical overreliance on a limited number of clients, persistent profitability challenges and cash burn, and the inherent volatility and regulatory uncertainty of the digital asset market.

1. Client Concentration and Significant Revenue Loss: Bakkt has historically been heavily dependent on a few key clients for a substantial portion of its revenue. For instance, 74% of its 2023 crypto services revenue stemmed from a single contract with Webull. The termination of contracts with major partners like Webull and Bank of America in early 2025 is projected to result in a massive 73% decline in top-line revenue. This significant client concentration risk led to investor lawsuits and a substantial drop in Bakkt's stock price.
2. Persistent Profitability Issues and Cash Burn: Bakkt has a history of unprofitability, marked by persistent net losses and negative free cash flow. Despite strategic efforts to pivot its business model, the company continues to face challenges in achieving sustainable profitability, with a very thin gross profit margin (e.g., 0.35% in Q3 2025). Concerns about Bakkt's ability to continue as a going concern due to historical operating losses and limited cash reserves have been highlighted, with the company reportedly having less than a year of cash runway. The need to frequently raise additional capital has also led to substantial equity dilution for shareholders.
3. Digital Asset Market Volatility and Regulatory Uncertainty: As a company focused on crypto infrastructure and services, Bakkt's revenue growth is directly tied to the highly volatile digital asset market. Downturns in the crypto market can quickly reduce trading volumes and the value of assets under custody, directly impacting Bakkt's revenue. Furthermore, the regulatory landscape for blockchain technologies and digital assets is uncertain, evolving, and subject to change. Potential regulatory shifts, such as the reclassification of Bitcoin as a security, could trigger significant compliance challenges and materially impact Bakkt's operations.

The accelerating entry and expansion of traditional financial institutions (TradFi) into the digital asset space. Major players like Fidelity, BlackRock, JPMorgan, and BNY Mellon are increasingly offering direct institutional-grade crypto custody, trading, and asset management services, leveraging their existing vast client networks, deep capital, and established regulatory trust. This directly challenges Bakkt's position as a bridge between TradFi and crypto by allowing incumbents to build their own comprehensive digital asset infrastructure.

The ongoing maturation and increasing adoption of Decentralized Finance (DeFi) protocols and robust self-custody solutions. As DeFi platforms become more user-friendly, liquid, and secure, and as technologies for individuals and institutions to manage their own digital assets without intermediaries improve, the demand for centralized platforms like Bakkt for trading, lending, and custody services could diminish for certain user segments.

Bakkt Holdings, Inc. (BKKT) primarily focuses on crypto solutions, encompassing institutional-grade custody, trading, and on-ramp capabilities for digital assets. The company's prior involvement in loyalty programs was discontinued with the sale of its Loyalty business in July 2025, effective from Q3 2025.

Addressable Markets for Main Products and Services:

• Crypto Asset Management: The global crypto asset management market, which includes services like custody and wallet management, was valued at approximately between USD 0.9 billion and USD 2 billion in 2024. This market is projected to grow significantly, reaching an estimated USD 4.5 billion to USD 9.3 billion by 2030-2032. North America is a dominant region in this market, holding a substantial revenue share.
• Digital Asset Exchange and Cryptocurrency Trading: The global digital asset exchange market was valued at approximately between USD 5.7 billion and USD 12.5 billion in 2024. Projections indicate robust growth, with the market expected to reach between USD 11.7 billion and USD 45.2 billion by 2030-2032. The broader global cryptocurrency market capitalization stands at $3.57 trillion as of November 2025. North America represents a significant portion of the cryptocurrency market, with the U.S. market anticipated to grow at a notable Compound Annual Growth Rate (CAGR). Fiat-to-crypto on-ramp services are integral to the crypto trading ecosystem, facilitating the conversion of traditional currencies into digital assets, with institutional flows in the U.S. for Bitcoin on-ramps alone reaching $4.6 trillion between July 2024 and June 2025.

1. Growth in Gross Crypto Services Revenue and Notional Traded Volume: Bakkt's strategic shift to become a pure-play crypto infrastructure company means that its future revenue will largely depend on the expansion of its core crypto offerings. The company has already demonstrated significant year-over-year increases in gross crypto services revenue and notional crypto traded volume, fueled by increased crypto market activity and rising prices. This trend is expected to continue as the company further focuses on its crypto business.
2. Enhancements and Expansion of the "Brokerage-in-a-Box" Solution: Bakkt is actively upgrading its "brokerage-in-a-box" solution, including plans to roll out "brokerage in a box 2.0" in the second half of 2025. These technological advancements are designed to offer clients faster market entry with advanced trading capabilities, improve user experience, and create new monetization opportunities. The platform's capacity to support over 200 cryptocurrencies, up from approximately 50, is also a key growth factor.
3. Launch of Stablecoin Payments Solution (Bakkt Agent) and AI-enabled Finance: A significant driver of future revenue growth is the launch of Bakkt Agent, a stablecoin payments solution. This initiative, supported by a strategic partnership with Distributed Technologies Research (DTR), aims to provide AI-enabled consumer finance and cross-border payment capabilities, tapping into the expanding stablecoin payments ecosystem.
4. Expansion of Product Offerings (New Cryptocurrencies) and Client Network: Bakkt has demonstrated a strategy of enhancing its crypto solutions platform by introducing new cryptocurrencies and onboarding new institutional clients onto its brokerage infrastructure. This expansion of both available assets and its client base is expected to contribute to increased trading volumes and associated revenue.

Share Issuance

• On July 30, 2025, Bakkt completed an underwritten public offering of Class A common stock and pre-funded warrants, which generated gross proceeds of approximately $75 million. The company intends to use the net proceeds for the purchase of Bitcoin and other digital assets, working capital, and general corporate purposes.
• In June 2025, Bakkt announced plans to raise up to $1 billion through equity and debt offerings to fund a Bitcoin acquisition strategy.
• On November 4, 2025, Bakkt completed a reorganization to eliminate its Up-C structure and transition to a single class of common stock, which simplifies its capital structure and aligns economic and governance rights for all shareholders.

Outbound Investments

• On August 4, 2025, Bakkt entered into a share purchase agreement to acquire approximately 30% of MHT (TSE: 8105), a Tokyo Stock Exchange-listed company, becoming its largest shareholder. This investment initiates Bakkt's Japan Bitcoin treasury strategy.

Capital Expenditures

• Capitalized internal-use software development costs and other capital expenditures totaled $14.763 million in 2023.
• Capitalized internal-use software development costs and other capital expenditures amounted to $8.249 million in 2022.
• The primary focus of these capital expenditures is on internal-use software development, consistent with Bakkt's role as a crypto infrastructure company.