Bakkt Holdings Share Price Surge

Bakkt Holdings’ share price surged past analysts’ one-year consensus target on Monday, following the announcement of notable crypto investor Michal Alfred joining the board.

BKKT experienced a more than 40% increase, closing at $14.70 per share, its highest level since late July. This exceeded analysts’ average prediction of $13.26. Michal Alfred co-founded Digital Assets Data, a crypto-focused platform acquired by NYDIG in 2020, and has invested in various prominent firms such as Swan Bitcoin and Bitwise Asset Management.

Bakkt CEO Akshay Naheta stated, “We’re doubling down on our mission to build next-generation financial infrastructure by bringing world-class leaders onto our board. Mike’s proven track record and reputation in the digital asset and fintech ecosystem brings unparalleled expertise, a powerful network, and institutional credibility.”

In recent months, the company has taken steps to elevate its stock price, which has fallen more than 40% year-to-date and over 94% since its all-time high in late 2021.

In July, Bakkt sold its loyalty rewards business for $11 million, allowing a sharper focus on digital asset infrastructure. This strategic move aims to streamline operations and enhance core crypto services, including custody, stablecoin payments, and tokenized assets. The crypto business generated over $568 million in revenue during the second quarter, while the loyalty unit contributed about $10 million.

In June, the company informed the U.S. SEC about plans to sell up to $1 billion in securities to raise necessary capital for potential expansion into Bitcoin, following a recent update to its investment policy allowing for Bitcoin and other digital assets within its corporate treasury.

Earlier this month, Benchmark Company initiated coverage with a buy rating and a price target of $13. Analyst Mark Palmer noted that the company is “poised for a fresh start after a period of restructuring,” which has streamlined its focus and reset its growth trajectory.

He described the divestiture of the custody business and the upcoming sale of its legacy loyalty business as a decisive exit from capital-intensive, non-core operations that had adversely affected its profitability and investor confidence. Positive developments include Naheta’s hiring in March and new initiatives concerning Bitcoin and stablecoins.

In a statement, Alfred expressed enthusiasm about collaborating with Bakkt on its next growth phase, stating that Bakkt has a unique opportunity to deliver a trusted fintech platform for institutions amid four transformative trends over the next decade: digital asset trading, stablecoin payments, AI agents, and Bitcoin.