Bakkt’s $75 million public offering in July 2025 isn’t exactly about buying Bitcoin directly. The struggling company is pivoting hard from its failing loyalty programs business into crypto infrastructure. With only $60-62 million in cash and burning through $13-15 million quarterly, they desperately need funds. The offering aims to transform Bakkt into a pure-play digital asset company, focusing on crypto services rather than asset purchases. Their thin margins and operational struggles reveal deeper challenges ahead.
Bakkt just dropped news of a $75 million public offering in July 2025, and the market wasn’t exactly throwing confetti. Shares took a nosedive faster than you could say “dilution concerns.” Classic Wall Street reaction to equity raises, really.
The company expects to close this deal around July 30, assuming all the usual bureaucratic boxes get checked. They’re positioning this as fuel for their transformation into a pure-play crypto infrastructure company. Translation: they’re ditching the loyalty program stuff and going all-in on digital assets. With spot ETF approvals gaining momentum across the financial sector, the timing could work in their favor.
Here’s where it gets interesting. Bakkt’s Q2 2025 numbers tell quite the story. They pulled in an estimated $577 to $579 million in total revenue, with crypto revenues accounting for basically all of it at $568 to $569 million. Meanwhile, their net loyalty revenues? A measly $9 to $10 million. Talk about knowing which way the wind’s blowing.
But here’s the kicker – those impressive crypto revenues come with equally impressive costs. Execution, clearing, and brokerage fees ate up $565 to $566 million. The margins are thinner than a college student’s wallet.
The company’s sitting on about $60 to $62 million in cash at the end of June, plus an untouched $40 million credit line. Not exactly swimming in liquidity for a company with such massive revenue flows. Operations burned through an estimated $13 million to $15 million in the quarter, adding pressure to the cash position.
This offering isn’t just about raising cash. It’s about Bakkt doubling down on crypto infrastructure while shedding legacy business lines. They need the capital to invest in technology and integration efforts, especially after selling off non-core assets. The offering includes 6,753,627 shares of Class A common stock alongside pre-funded warrants.
The regulatory environment remains a minefield. Crypto companies are maneuvering constantly shifting rules around exchanges, stablecoins, and digital payments. Bakkt filed their Form 424B5 with the SEC, checking all the compliance boxes, but uncertainty still looms large.
Investors seem skeptical despite the strong crypto revenue stream. Market volatility in the crypto sector doesn’t help equity issuances either. The real test? Whether Bakkt can deploy this fresh capital effectively and prove their crypto-focused strategy actually works. The market’s watching, and it’s not particularly patient.
