Bakkt is divesting its loyalty rewards business to Project Labrador for $11 million and raising $75 million to strengthen its focus on crypto services such as custody and stablecoin payments. This strategic shift comes as Bakkt attempts to streamline operations and enhance revenue, with its crypto segment generating approximately $568 million in Q2, overshadowing the loyalty unit's $10 million. The repositioning will be officially acknowledged once the transaction is complete, allowing Bakkt to concentrate solely on its core crypto offerings. Analysts suggest this pivot, while sharpening its focus, may not sufficiently rival leaders like Coinbase in the institutional crypto market. The decision also reflects financial pressures, hinting at ongoing challenges from customer fund withdrawals and operational losses tied to the loyalty business. Despite these challenges, industry observers see Bakkt's move towards enhancing its crypto infrastructure as a key strategy for future growth.

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