Bakkt Holdings, Inc. reported total revenues of $349.0 million for the year ended December 31, 2024, a significant increase from $78.0 million in the prior year. This surge was primarily driven by a substantial rise in crypto services revenue, which reached $344.1 million, compared to $727.0 thousand in 2023. Conversely, loyalty services revenue decreased slightly to $49.2 million from $53.1 million in 2023. The company reported a net loss of $103.4 million for 2024, compared to a net loss of $225.8 million in 2023.
The increase in revenue was accompanied by a substantial increase in operating expenses, rising to $358.3 million in 2024 from $100.8 million in 2023. This increase was largely due to higher crypto trading costs, reflecting the increased volume in crypto services. Compensation and benefits expense decreased by 18.5% year-over-year, primarily due to a reduction in headcount resulting from restructuring initiatives. The company also reported a decrease in acquisition-related expenses and depreciation and amortization. However, restructuring expenses increased by 77.8% year-over-year.
During 2024, Bakkt undertook several key strategic developments. The company initiated an investigation into strategic alternatives for its loyalty business, aiming to refocus on crypto. Furthermore, Bakkt entered into a Cooperation Agreement with Distributed Technologies Research Ltd. (DTR), gaining access to payment processing technology and potentially acquiring DTR in the future. A significant development was the agreement to sell Bakkt Trust Company LLC to ICE for $1.5 million plus the assumption of certain liabilities. A reverse stock split of 1-for-25 was also implemented in April 2024.
Key operational developments included an increase in crypto-enabled accounts to 6.7 million from 6.2 million in 2023, and a notional traded volume of $4,183.2 million in 2024, compared to $1,531.7 million in 2023. Assets under custody also increased significantly to $2,301.9 million from $701.6 million in 2023. The company's employee headcount stood at 559 as of December 31, 2024. The company also experienced significant changes in executive leadership during the year.
Bakkt's outlook remains uncertain, with the loss of its largest crypto client, Webull, raising substantial doubt about its ability to continue as a going concern for the next 12 months. Management plans to implement cost reduction measures to mitigate this risk. The company's future performance will depend on its ability to attract new clients, successfully launch new products, and navigate the evolving regulatory landscape of the cryptocurrency industry.
About Bakkt Holdings, Inc.
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