Buckt’s revenue fell 77% in Q1 as the stablecoin took shape.
Bakkt swung to a first-quarter loss as crypto services revenue fell 77%, signaling the digital asset platform's push to reposition itself around stablecoin payments and AI-enabled financial infrastructure.
On Monday, the company Bakkt reported a net loss of $ 11.7 million, or 41 basic and diluted shares of 41 cents per hour, quarter ended 31. March. This compares to Bakkt's net income of $7.7 million, or $1.13 a diluted share, a year ago.
Crypto services revenue fell to $243.6 million from $1.07 billion last year, Bakht said. The company attributed the decline primarily to a drop in crypto trading volume. However, that revenue figure was almost entirely offset by crypto expenses and brokerage fees, which were $242 million in the quarter.
Excluding crypto expenses, operating expenses remained at $18.5 million, down slightly from $18.9 million a year ago. The net loss was $11.7 million compared to a net income of $7.7 million a year ago.
Bakkt ended the quarter with $82.6 million in cash, including $69.6 million raised in equity offerings during the period. The company also stated that it does not take long-term loans.
Bakkt shares fell in premarket trading. Source: Yahoo! Finance
Shares closed up 0.71% at $9.92 on Monday but fell 9.14% to $9.00 in premarket trading on Tuesday after the release.
Related: US Senator Asks Mark Zuckerberg on Meta's Stablecoin Plans
Bakkt goes on all stablecoins
Bakkt's revenue decline comes as the company is in the midst of a major pivot away from crypto trading infrastructure toward stable coin payments and agency AI.
The company closed the acquisition of Distributed Technology Research on April 30, bringing with it an AI-native payment engine and stablecoin compliance stack. It has signed a memorandum of understanding with stablecoin provider Zot, targeting $1 billion in annual payment volumes in South Asia, the Middle East and Sub-Saharan Africa.
“We believe that stablecoin infrastructure represents one of the most significant structural changes in global finance in decades,” CEO Akshay Naheta said in an earnings statement, as the GENIUS Act and the CLARITY Act allow regulatory tailwinds to increase the value of Bakkt's licensed infrastructure.
Related: OpenTrade Pays $17 Million to Expand Stablecoin Product Platform
Stablecoin infrastructure attracts interest
Bakkt's pivot comes as public market investor interest in stablecoin infrastructure companies grows.
Shares of Circle Internet Group rose nearly 16% on Monday after the USDC issuer reported a 20% rise in first-quarter revenue and reserve revenue to $694 million, and a $222 million presale of its ARC blockchain token at a fully mixed network valuation of $3 billion.
Debt results show USDC in circulation grew 28 percent year-over-year to $77 billion at quarter-end, while onchain transaction volume rose 263 percent to $21.5 trillion.
Related: Crypto Biz: Wall Street Wants More Than Bitcoin
