Overnight, without any prelude or major positive news, crypto-related stock Bakkt skyrocketed by over 50%. This sudden surge has thrust Bakkt—once marginalized due to client attrition and declining revenue—into the spotlight. But what’s driving this seemingly overnight success? Is it short-term speculation or a sign of shifting industry trends?
The Bakkt Rally: Opportunity or Market Sentiment?
On May 13, Bakkt’s stock price surged by more than 50% in a short period. The company, once hailed as a "bridge between traditional finance and crypto," had struggled with client losses and shrinking revenue in recent years. The immediate trigger was its Q1 report, showcasing a $7.7 million net profit—its first in years. However, a closer look reveals this was largely due to cost-cutting and one-time adjustments, not core business improvement.
What truly ignited market enthusiasm was Bakkt’s new strategic pivot. Partnering with DTR (founded by ex-SoftBank executives), Bakkt announced plans to launch AI-powered plugins and stablecoin payment services, targeting the "PayFi" sector—a fusion of AI-driven agents and blockchain-based global payments. This "AI + crypto" narrative quickly fueled speculation.
Additionally, Bakkt’s "acquisition potential" resurfaced. Though earlier talks with Trump-affiliated TMTG fell through, ICE still holds a majority stake, and rumors of Apex Fintech’s interest circulated. With a low float and 23% short interest, a short squeeze accelerated the rally.
Challenges Remain
- Client Losses: Key client Webull (a Nasdaq-listed broker) will terminate its crypto services partnership with Bakkt in June, erasing 70% of its revenue stream. Bank of America is also ending its loyalty-program collaboration.
- Fragile Fundamentals: The surge appears more like a sentiment-driven spike than a sustainable turnaround.
Crypto Stocks Rally: What’s the Market Betting On?
Bakkt isn’t alone. The crypto stock sector surged broadly last week:
- Coinbase: +23.97%
- TeraWulf: +10.06%
- MicroStrategy: +4%
Investors are shifting focus to crypto infrastructure—companies offering custody, settlement, compliance, and risk management. These "pipeline" players, with stable revenue models, align better with traditional finance valuations. Bakkt’s rally reflects this trend.
Traditional Finance Joins the Game
The real turning point isn’t Bakkt’s stock hike but traditional institutions embracing crypto:
Asia Leads:
- Futu Securities (Hong Kong) now offers BTC/ETH trading via stock accounts.
- Tiger Securities integrates crypto deposits/trades with traditional equities.
- Standard Chartered explores stablecoin sandboxes with HKMA.
Global Payment Giants:
- Stripe rolled out programmable stablecoin USDB in 101 countries.
- Visa/Mastercard integrate USDC into card networks.
- PayPal promotes PYUSD with 3.7% yield.
These moves signal a broader shift: Crypto is no longer taboo but a tool for efficiency and innovation. Bakkt’s strategy aligns with this—it’s not about current profits but potential as a gateway for institutional adoption.
FAQs
Q: Is Bakkt’s rally sustainable?
A: Short-term, it’s sentiment-driven. Long-term depends on executing its PayFi/AI strategy and replacing lost revenue streams.
Q: Why are crypto infrastructure stocks gaining traction?
A: They offer essential services (e.g., custody, compliance) with predictable revenues, appealing to traditional investors.
Q: How are traditional banks leveraging crypto?
A: Through stablecoins (e.g., PYUSD), trading integrations, and sandbox experiments—aiming for cost-efficient, transparent systems.
Conclusion
Bakkt’s surge is a microcosm of a larger trend. As capital flows into crypto infrastructure and institutions adopt blockchain solutions, we’re witnessing the early stages of a financial paradigm shift. The winners? Those building bridges—not hype.
👉 Explore crypto’s institutional adoption
👉 Why stablecoins are the future