Lawsuit Shocks Bakkt Investors as Revenue Plummets—Is This the End or a New Beginning for the Crypto Company?
Bakkt reels from investor lawsuit, losing major clients and millions in revenue as 2025 tests the firm’s survival and future strategy.
- 27.3%: Bakkt stock plunge in a single day after key client exits
- 73%: Expected drop in revenue from lost contracts
- $10M: Probable lawsuit liability (25% of Bakkt’s cash reserves)
- 98%: Share of revenue tied to crypto services
Bakkt Holdings, Inc. (NYSE: BKKT), once hailed as a bold innovator in digital asset custody and crypto rewards, is fighting for survival in 2025. The latest investor lawsuit, triggered by the sudden collapse of its client partnerships, has sent shares into a nosedive and spotlighted major cracks beneath Bakkt’s ambitious growth story.
On April 2, 2025, investors filed a class action lawsuit against Bakkt. The heart of the complaint? Extreme reliance on Webull Pay LLC, which generated a staggering 74% of Bakkt’s crypto service revenue in early 2024. Then, a bombshell hit in March: Bakkt revealed it would end its Webull agreement by June. Weeks later, Bank of America ditched a separate loyalty services deal, wiping out another 17% of revenues.
The market’s reaction was brutal. Investors, fearing a full-blown collapse, dumped Bakkt shares, driving a record 27.3% plunge in a single trading day and vaporizing tens of millions in market cap. With combined contract losses expected to slash revenues by 73%, analysts now question if Bakkt can survive this crisis—or pivot in time.
Q: Why Is Bakkt’s Revenue Model Under Fire?
Bakkt’s explosive reported revenue of $1.79 billion in Q4 2024 seemed dazzling at first glance, marking a 737% year-over-year surge. But that growth was fueled by just two clients—Webull and Bank of America. When both deals unraveled, so did Bakkt’s revenue base.
Nearly 98% of Bakkt’s income relied on cryptocurrency services, exposing glaring vulnerabilities once those partnerships vanished. The 73% revenue hole raises fundamental questions about the firm’s ability to diversify and build a resilient business.
Leading financial sites such as Bloomberg and CNBC report that client concentration like this is a glaring red flag for public tech companies, particularly in volatile sectors like crypto.
How Much Will the Lawsuit Hurt Bakkt Financially?
The lawsuit is far from a symbolic blow—it’s a potential existential threat. Nearly 50% of similar securities cases end in settlement, and typical figures suggest Bakkt faces around $10 million in expected lawsuit costs. That’s over a quarter of its $39 million cash stash (as of December 2024).
To put this in perspective:
– The company burned $27.54 million in just the first half of 2024
– Leadership must juggle legal battles, client losses, and urgent restructuring
– Most settlements in 2024 for analogous companies landed between $14-20 million
Given Bakkt’s negative price-to-earnings ratio of -1.14 (as of April 2025), and its eroding revenue, legal bills add powerful headwinds.
Q: What Strategic Moves Is Bakkt Making?
Management isn’t standing still. Major cost-saving steps include divesting its Trust custody unit for $1.5 million and shifting focus to stablecoin payments and institutional crypto services. Bakkt has also named Akshay Naheta as co-CEO to steer the turnaround.
Crucially, Q1 2025 guidance of $1.03 to $1.28 billion shows Bakkt is bracing for revenue shockwaves and trying to plot a roadmap beyond its former anchor clients.
But the real test will come in retaining existing clients, attracting new enterprise business, and—perhaps most importantly—restoring investor trust.
How Can Bakkt Navigate This Crisis?
To survive, Bakkt must:
– Diversify its client mix fast, reducing exposure to any single partner
– Push forward in developing new stablecoin and enterprise crypto solutions
– Aggressively manage costs while shoring up its battered balance sheet
– Communicate clearly to regain market and investor confidence
Expert analysis from sites like Reuters and Fortune underscores that rapid innovation, transparency, and nimble crisis management offer the best chances of stemming the bleeding and setting a new course.
Q: Is This a Death Spiral or a Rebirth for Bakkt?
The lawsuit, massive client losses, and a shrinking cash runway combine to form a make-or-break moment for Bakkt. Success isn’t impossible, but the margin for error is razor thin. The stakes: survival, reinvention, or slide into irrelevance.
If Bakkt can resolve legal uncertainties quickly, lock in new partnerships, and successfully shift its strategy, the next chapter could mark a promising rebirth. If not, industry analysts warn of deeper restructuring—or potential acquisition.
Will Bakkt emerge stronger or fade away? The next few quarters will decide. If you’re a crypto market watcher or investor, track Bakkt closely—its next moves may reshape the industry playbook on crisis management.
Checklist: Bakkt’s Survival Playbook
- ✔️ Resolve investor lawsuit efficiently and transparently
- ✔️ Stem cash burn and preserve reserves through cost controls
- ✔️ Replace lost revenues by courting new stablecoin/enterprise clients
- ✔️ Communicate openly with investors and reduce reliance on single partners
- ✔️ Monitor leadership actions for signs of effective turnaround
Stay tuned for the latest as Bakkt navigates its most turbulent chapter yet.
