Bakkt Reports Fourth Quarter and Full Year 2024 Results

- Announces Akshay Naheta to serve as co-CEO of Bakkt and strategic partnership with Distributed Technologies Research ("DTR"), a cutting-edge stablecoin payments platform

- Signed definitive agreement to divest Trust business to Intercontinental Exchange ("ICE"); exploring strategic opportunities for Loyalty

- Fourth quarter trading volumes up 465% sequentially and 778% year-over-year

- Net loss improved year-over-year 48.7% for the quarter, 54.2% for the full year

- Adjusted EBITDA improved year-over-year 66.3% for the quarter, 31.6% for the full year

ALPHARETTA, Ga.--(BUSINESS WIRE)--March 19, 2025-- 

Bakkt Holdings, Inc. ("Bakkt," "Company," "we" or "us") (NYSE: BKKT) announced its financial and operational results for the quarter and full year ended December 31, 2024.

CEO Comments:

"2024 was a pivotal year for Bakkt as we successfully executed on our strategic priorities, delivered strong year-end results, and capitalized on the favorable macro conditions for the crypto industry," said Andy Main, CEO of Bakkt. "We achieved significant growth in our core crypto business, with Q4 total revenue increasing 737.9% year-over-year to $1,797.3 million and notional crypto trading volume reaching a record $1,777.6 million in the quarter. This performance was driven by the integration of our advanced trading infrastructure, strategic addition of new coins, and the growing demand for our regulated crypto solutions."

Mr. Main continued, "As we enter 2025, Bakkt is sharpening its focus on the future of crypto, leveraging our technology, market expertise, and strategic partnerships to be in a position to capitalize on the opportunities ahead. Our partnership with DTR, combined with Akshay Naheta agreeing to joining as co-CEO, marks a pivotal moment by expanding our capabilities and we believe will position us to be able to capture market share in the global stablecoin payments network. The definitive agreement for the divestiture of our Bakkt Trust custody business enables us to double down on our core offerings - providing institutional-grade crypto trading, liquidity, and subject to applicable regulatory approvals, payment solutions. Our client-centric approach supports businesses at every stage of their journey, from market entry with our Brokerage Crypto Services ("BCS") platform to advanced trading and liquidity services through BakktX. With accelerating institutional adoption, an increasingly supportive regulatory environment, and the expansion of our technology stack through this partnership with DTR, we are well-positioned to drive meaningful growth and solidify our position as a leader in the evolving digital asset economy."

Fourth Quarter and Full Year 2024 Key Performance Indicators:

   -- Crypto enabled accounts grew to 6.7 million, up 8.1% year-over-year. 
 
   -- Notional crypto traded volume increased 778% year-over-year to $1,777.6 
      million for the quarter and 204.2% to $3,446.6 million for the full year 
      2024, driven by stronger crypto market activity and increased prices. 
 
   -- Assets under custody increased 228.1% year-over-year to $2,301.9 million, 
      primarily due to higher trading prices for crypto assets. 
 
   -- Total transacting accounts increased 6.5% year-over-year to approximately 
      974,429, primarily due to a migration of Swan customers to our platform 
      in December 2024 and an increase in crypto adoption and macro 
      environment. 

Fourth Quarter and Full Year 2024 Financial Highlights (unaudited):

   -- Total revenues of $1,797.3 million for the quarter and $3,490.2 million 
      for the full year reflect an increase in gross crypto services revenues 
      driven by Bakkt Crypto and the overall increase in market activity. Net 
      loyalty revenues of $11.1 million for the quarter and $49.2 million for 
      the full year decreased 26.5% and 7.3% year-over-year, respectively, 
      driven by lower notional loyalty traded volume and redemption. 
 
   -- Total operating expenses of $1,809.0 million for the quarter and $3,583.1 
      million for the full year reflect an increase in crypto costs and 
      execution, clearing and brokerage fees driven by higher trading volume. 
 
   -- Total operating expenses excluding crypto costs and execution, clearing 
      and brokerage fees decreased year-over-year 69.0% to $29.5 million for 
      the quarter and 45.4% to $155.9 million for the full year, primarily as a 
      result of the restructuring and reduction in headcount in the first 
      quarter of 2024. 
 
   -- Operating loss improved year-over-year 85.1% to $11.7 million for the 
      quarter and 59.2% to $92.9 million for the full year due to the 
      recognized $37.2 million goodwill and intangible asset impairment and 
      impairment of long-lived assets of $30.2 million in the fourth quarter of 
      2023, along with higher crypto services revenue. 
 
   -- Net loss improved year-over-year 48.7% to $40.4 million for the quarter 
      and 54.2% to $103.4 million for the full year as the fourth quarter of 
      2023 was impacted by the recognized goodwill and intangible asset 
      impairment and impairment of long-lived assets. 
 
   -- Adjusted EBITDA loss (non-GAAP) decreased year-over-year 66.3% to $6.4 
      million for the quarter and 31.6% to $64.2 million for the full year 
      primarily due to the overall decrease in compensation and benefits 
      expense and marketing expense. 
 
                    Fourth Quarter 2024 Condensed Results 
 
                                                                    Increase/ 
$ in millions                                       4Q24     4Q23   (decrease) 
----------------------------------------------  --------  -------  ----------- 
Total revenues(1)                               $1,797.3   $214.5       737.9% 
   Crypto costs and execution, clearing and 
    brokerage fees                               1,779.5    197.8       799.6% 
   Operating expenses, excluding crypto costs 
    and execution, clearing and brokerage 
    fees                                            29.5     95.2      (69.0%) 
                                                --------  -------  ----------- 
Total operating expenses                         1,809.0    293.0       517.4% 
                                                --------  -------  ----------- 
Operating loss                                    (11.7)   (78.5)      (85.1%) 
Net loss                                          (40.4)   (78.7)      (48.7%) 
Adjusted EBITDA loss (non-GAAP)                   ($6.4)  ($19.0)      (66.3%) 
----------------------------------------------  --------  -------  ----------- 
 
 
                       Full Year 2024 Condensed Results 
 
                                                                    Increase/ 
$ in millions                                       FY24     FY23   (decrease) 
----------------------------------------------  --------  -------  ----------- 
Total revenues(1)                               $3,490.2   $780.1       347.4% 
   Crypto costs and execution, clearing and 
    brokerage fees                               3,427.2    722.3       374.5% 
   Operating expenses, excluding crypto costs 
    and execution, clearing and brokerage 
    fees                                           155.9    285.8      (45.5%) 
                                                --------  -------  ----------- 
Total operating expenses                         3,583.1  1,008.0       255.5% 
                                                --------  -------  ----------- 
Operating loss                                    (92.9)  (227.9)      (59.2%) 
Net loss                                         (103.4)  (225.8)      (54.2%) 
Adjusted EBITDA loss (non-GAAP)                  ($64.2)  ($93.9)      (31.6%) 
----------------------------------------------  --------  -------  ----------- 
 
 

Recent Operational Updates:

   -- New Co-CEO and DTR Partnership: 
 
          -- Bakkt has agreed to appoint Akshay Naheta, a seasoned fintech and 
             investment leader and Founder, CEO of DTR, as co-CEO alongside 
             Andy Main, strengthening its leadership team. Simultaneously, 
             Bakkt has entered a strategic partnership with Distributed 
             Technologies Research $(DTR.AU)$ to integrate Bakkt's regulated crypto 
             trading and brokerage platform with DTR's stablecoin payments 
             technology, subject to applicable regulatory approval. This 
             collaboration is expected to enable stablecoin payment 
             transactions for Bakkt's customers, unlocking new revenue streams 
             and expanding Bakkt's addressable market into the cross-border 
             payments industry. 
 
   -- Signed divestiture of Bakkt Trust: 
 
          -- Monday, Bakkt reached a definitive agreement to sell its qualified 
             custodian subsidiary, Bakkt Trust Company, to ICE for cash 
             consideration of $1.5 million plus the assumption of Bakkt Trust's 
             regulatory capital requirement and certain operating costs of 
             Bakkt Trust during the period between the signing of the purchase 
             agreement and the closing of the transaction, subject to such 
             closing. The closing of this transaction is subject to regulatory 
             approval and other customary conditions. The divestiture is 
             expected to streamline operations by reducing operating expenses 
             by $3.8 million annually and freeing up approximately $3.0 million 
             of capital held for regulatory reserves, allowing the Company to 
             reinvest in its core crypto business, while maintaining seamless 
             custody solutions for clients through a robust network of 
             reputable custody providers. 
 
   -- Strategic alternatives for Loyalty: 
 
          -- The Company also announced that it is exploring strategic 

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March 19, 2025 16:45 ET (20:45 GMT)