Key Updates on Bakkt
- Broker Benchmark has launched coverage of Bakkt with a recommendation to buy, setting a price target of $13.
- The company is shifting towards a ‘brokerage-in-a-box’ model geared towards institutions, complementing it with a multinational bitcoin treasury initiative and a stablecoin payment system developed in partnership with Distributed Technologies Research (DTR).
- Bakkt’s comprehensive compliance structure, reinforced by a BitLicense and money transmitter licenses across the United States, positions it favorably in a competitive landscape.
Recent Developments: Bakkt Holdings (BKKT) aims to revitalize its business following a challenging transition phase, as highlighted in a recent report from Benchmark. The firm has received approval for a buy rating, with a target set at $13.
As of the latest updates, the share prices have seen an increase of 1.3%, trading around $8.63 at the time of this report’s release.
Under CEO Akshay Naheta, significant changes have been made to divest from the custody sector while selling off the outdated loyalty business to better align with current market conditions and enhance investor confidence.
The reinstated strategies focus on:
- A brokerage-in-a-box framework enabling financial institutions to incorporate crypto services.
- An international bitcoin treasury program, particularly noted for its stake in Japan’s Marusho Hotta and ambitions for expansion in India and South Korea.
- A stablecoin payment network dubbed Bakkt Agent, created with DTR.
Regulatory Standpoint
Palmer emphasized Bakkt’s advantageous regulatory footprint, marked by its licenses which provide a compliance edge in a saturated market.
Financial Outlook
Benchmark positions Bakkt’s valuations at 5 times EV/EBITDA based on projected earnings for 2026, hence arriving at the $13 price guideline.
