Bakkt Business Model Canvas

Bakkt's strategic pivot involves divesting its Loyalty business to Project Labrador Holdco, LLC, an affiliate of Roman DBDR Technology Advisors, Inc., as agreed in July 2025. This move is crucial for Bakkt to concentrate its efforts and capital on its core cryptocurrency infrastructure and the burgeoning stablecoin payments ecosystem.

The sale, anticipated to finalize in the third quarter of 2025, signifies Bakkt's transformation into a focused, pure-play crypto entity. By shedding non-core assets, Bakkt aims to streamline operations and enhance its competitive position within the digital asset space.

• Divestiture Agreement: Definitive agreement signed in July 2025 with Project Labrador Holdco, LLC.
• Transaction Rationale: Enables Bakkt to become a pure-play crypto infrastructure company.
• Strategic Focus: Allows Bakkt to dedicate all resources to core crypto offerings and stablecoin payments.
• Expected Closing: Q3 2025.

Bakkt is actively working to expand its reach by bringing more institutional clients into the fold. This includes forging new relationships with entities like Bitcoin ETF providers, crypto-native firms, neobanks, and various fintech companies.

The goal is to not only grow the number of clients but also to make sure existing ones are actively engaged within the rapidly changing digital asset landscape. This strategic expansion is key to Bakkt's growth in the evolving crypto economy.

• Expanding Institutional Outreach: Bakkt targets Bitcoin ETF issuers and other crypto-focused financial services for new partnerships.
• Deepening Existing Relationships: The company aims to increase engagement with its current retail and institutional client base.
• Activating the Crypto Economy: Bakkt's strategy focuses on bringing more participants into and activating within the digital asset ecosystem.

Bakkt’s skilled workforce and leadership expertise are cornerstones of its business model. The company boasts a team of seasoned market experts, adept engineers, and financial professionals who are crucial for navigating the complex fintech and digital asset landscapes. This human capital directly fuels innovation and the effective execution of Bakkt's strategic initiatives.

The leadership team's depth is particularly noteworthy. With the appointment of new co-CEOs, Bakkt has reinforced its strategic direction and operational capabilities. This leadership continuity and expertise are vital for driving growth and adapting to the rapidly evolving digital asset market.

• Expertise in Fintech and Digital Assets: Bakkt's team possesses deep knowledge in financial technology and the burgeoning digital asset sector, enabling them to develop and manage innovative products and services.
• Strengthened Leadership: The recent appointment of co-CEOs signifies a commitment to robust governance and strategic foresight, essential for guiding the company through market volatility and expansion.
• Innovation and Execution: The collective expertise of engineers, market analysts, and financial professionals empowers Bakkt to drive product development and execute its business strategy effectively in a competitive environment.

Bakkt's strategic partnerships are a cornerstone of its business model, significantly amplifying its market reach and service offerings. A prime example is the collaboration with DTR, which enhances Bakkt's capabilities in specific market segments. Furthermore, the investment in Marusho Hotta demonstrates a commitment to expanding its ecosystem and leveraging specialized expertise. These alliances are not merely transactional; they represent a strategic pooling of resources and market access.

The company's client network is equally vital, acting as a direct channel for revenue generation and market validation. Bakkt actively cultivates relationships with a diverse range of clients, with a particular focus on institutional players. This growing base of institutional clients is a testament to Bakkt's ability to meet the demanding requirements of sophisticated market participants. The expansion of this network directly translates into increased transaction volumes and a stronger market presence.

• Strategic Alliances: Partnerships like the one with DTR are crucial for expanding Bakkt's technological capabilities and market penetration.
• Investment in Expertise: The investment in Marusho Hotta signifies Bakkt's strategy to integrate specialized knowledge and talent, thereby enhancing its service portfolio.
• Institutional Client Growth: Bakkt's expanding network of institutional clients, a key demographic for digital asset services, underscores its growing credibility and market traction.
• Market Reach Extension: These partnerships and client relationships collectively serve as invaluable assets, extending Bakkt's operational reach and competitive edge in the evolving digital asset landscape.

Bakkt focuses on strategic account management for its key partners and large institutional clients. This approach is designed to foster deeper relationships and uncover new avenues for collaboration, ensuring alignment with their evolving business requirements.

This involves proactive engagement and the development of bespoke solutions tailored to the specific needs of these critical relationships. For instance, in 2024, Bakkt continued to refine its offerings for institutional investors seeking regulated digital asset solutions, a segment where dedicated account management is paramount for adoption and sustained use.

• Deepened Engagement: Bakkt actively manages relationships with major partners to ensure their needs are met and to identify areas for growth.
• Customized Solutions: The company provides tailored solutions, recognizing that large institutional clients often have unique operational and strategic objectives.
• Opportunity Exploration: Strategic account management facilitates the discovery of new business opportunities and product integrations with key stakeholders.
• Relationship Value: By prioritizing these relationships, Bakkt aims to enhance partner loyalty and drive mutual value in the digital asset ecosystem.

Bakkt prioritizes building trust with its customers by being upfront about its operations and safeguarding digital assets. This commitment to integrity and transparency is crucial for keeping clients and drawing in new users within the digital asset space.

Given the sensitive nature of digital assets, Bakkt cultivates customer relationships by emphasizing integrity, transparency, and robust security measures. This focus on building trust is paramount for retaining clients and attracting new users in a highly scrutinized industry.

• Security First: Bakkt implements advanced security protocols, including cold storage solutions and multi-signature wallets, to protect customer assets. In 2023, the digital asset industry saw significant efforts to bolster security following past incidents, with companies like Bakkt investing heavily in these measures.
• Transparent Operations: Bakkt provides clear information regarding its services, fees, and regulatory compliance, ensuring customers understand how their assets are managed and protected.
• Regulatory Adherence: Operating within regulated frameworks, Bakkt demonstrates a commitment to compliance, which is a key factor for trust among institutional and retail investors alike.
• Customer Support: Responsive and knowledgeable customer support is integral to maintaining positive relationships, addressing concerns, and reinforcing the sense of security and reliability.

Neobanks and fintech innovators are a key customer segment for Bakkt, actively seeking to embed cryptocurrency functionalities within their existing digital banking and financial service offerings. These forward-thinking companies, often characterized by their agile development and customer-centric approaches, recognize the growing demand for digital asset exposure among their user bases.

They leverage Bakkt's robust API and Software-as-a-Service (SaaS) solutions to streamline the integration of crypto trading, custody, and other digital asset services. This allows them to bypass the significant costs and complexities associated with building proprietary blockchain infrastructure from the ground up, accelerating their market entry and innovation cycles.

For instance, the digital asset market continued its upward trajectory through 2024, with a significant portion of this growth driven by increased institutional adoption and the expansion of crypto services into mainstream financial platforms. Bakkt's partners in this segment are well-positioned to capture a share of this expanding market.

• Target Audience: Digital banks and new-age financial technology firms.
• Value Proposition: Seamless integration of crypto capabilities via Bakkt's API and SaaS.
• Benefit: Avoids the need for in-house infrastructure development, reducing time-to-market and operational overhead.
• Market Trend: Growing demand for crypto services from retail users of digital financial platforms.

This segment represents a significant new focus for companies like Bakkt, encompassing traditional corporations now actively considering holding Bitcoin and other digital assets on their balance sheets as a treasury management strategy. This shift is driven by the potential for diversification and yield enhancement.

Bakkt's strategic pivot, underscored by its acquisition of Marusho Hotta, directly targets these businesses. This move aims to provide the necessary infrastructure and regulatory compliance for corporate treasury departments to securely manage digital assets.

The growing interest in Bitcoin as a treasury asset is evident. For instance, in 2024, several publicly traded companies continued to allocate portions of their treasury to Bitcoin, seeking an alternative to traditional cash reserves and exploring its potential as a hedge against inflation.

• Corporate Adoption: Traditional companies are increasingly viewing Bitcoin as a viable treasury asset, moving beyond speculative investment to strategic balance sheet management.
• Bakkt's Strategic Alignment: The acquisition of Marusho Hotta signifies Bakkt's commitment to serving this burgeoning corporate segment by offering secure custody and management solutions for digital assets.
• Market Trends: By mid-2024, a notable number of public companies had integrated Bitcoin into their treasury operations, reflecting a growing institutional acceptance and a desire for portfolio diversification.

While Bakkt has transitioned away from its direct Trust custody operations, it continues to generate revenue through custody services, often via partnerships. This means Bakkt may earn fees for facilitating custody solutions for its clients, leveraging its infrastructure or relationships with other custodians. Historically, these custody fees were a significant part of Bakkt's revenue model.

For instance, in the first quarter of 2024, Bakkt reported total revenue of $16.7 million, a decrease from the previous year. While specific breakdowns for custody fees aren't always granularly disclosed post-divestiture, the ongoing provision of these services, even through partners, indicates a continued, albeit potentially smaller, revenue stream.

• Partnership Revenue: Bakkt earns fees from collaborating with other entities to provide custody solutions.
• Facilitation Fees: Revenue is generated by enabling clients to access custody services through Bakkt's platform or network.
• Historical Context: Custody fees were a foundational revenue component for Bakkt in its earlier stages.

Bakkt anticipates new revenue streams through its planned stablecoin payment network, a development bolstered by its strategic partnership with DTR. This initiative is poised to capitalize on the growing demand for efficient global financial transactions.

The network is expected to generate fees from various sources, including the facilitation of global money movement. This represents a significant opportunity as cross-border payments continue to expand, reaching an estimated $156 trillion in 2023 according to SWIFT data.

Additional revenue will likely stem from merchant checkout widgets, simplifying digital asset payments for businesses. Bakkt also plans to integrate AI-powered payment solutions, offering enhanced functionality and potentially attracting a wider user base.

• Global Money Movement Fees: Transaction charges for international currency transfers.
• Merchant Checkout Widgets: Fees associated with integrating payment solutions for e-commerce.
• AI-Powered Payment Solutions: Revenue from advanced payment processing and analytics services.