Bakkt Surges 10% on Stablecoin Deal, Easing Liquidity Concerns
The acquisition of DTR and a corporate rebrand signal a strategic pivot for the crypto infrastructure firm, which had previously warned of cash flow issues.
Shares of Bakkt Holdings (NYSE: BKKT) jumped more than 10% Tuesday as investors cheered the company's strategic acquisition of a stablecoin infrastructure provider, a move seen as a critical step in its ongoing turnaround effort.
The digital asset marketplace, which has been battling significant financial headwinds for the past year, saw its stock climb 10.4% to $21.41 in regular trading. The rally was spurred by the announcement of its deal to acquire Distributed Technologies Research (DTR), which specializes in stablecoin payments, and a plan to rebrand as Bakkt, Inc.
The acquisition is a key part of Bakkt’s pivot toward becoming a pure-play crypto infrastructure company. By integrating DTR's technology, Bakkt aims to bolster its stablecoin settlement capabilities and reduce its reliance on third-party providers, positioning itself more deeply in the neobanking and programmable payments sectors.
This optimistic news marks a sharp reversal in fortune for the company, which just months ago faced severe liquidity challenges. In a February 2024 press release detailing preliminary fourth-quarter 2023 results, Bakkt disclosed figures that raised alarms among investors. The company reported estimated total costs that nearly matched its revenue, indicating razor-thin margins.
More critically, the preliminary report revealed the company was burning through its cash reserves at an unsustainable rate. The cash used in operations, combined with a dwindling balance of cash and equivalents, led Bakkt to issue a "going concern" warning, a formal declaration of substantial doubt about its ability to continue operating for the next year without raising additional funds.
In the wake of that warning, Bakkt took decisive action. The company successfully completed a $42.4 million direct offering in March 2024 to shore up its balance sheet and has since worked to restructure its business and simplify its capital structure, including the elimination of all long-term debt in September 2025.
Tuesday’s price action suggests that investors are buying into the new strategy. The DTR acquisition is the latest and perhaps most significant step in repositioning the company for growth. The move was met with 'extremely bullish' sentiment from retail investors, according to reports from Stocktwits.
With a market capitalization of approximately $445 million, Bakkt is a fraction of its former size following its 2021 SPAC debut. However, the stock is now trading significantly above its 52-week low of $6.81, showing renewed market confidence. While the company still has a long way to go to achieve consistent profitability—as evidenced by a negative EPS of -$5.71—its recent strategic maneuvers provide a clearer path forward and have, for now, captured the market's approval.