Author: Scof, ChainCatcher
Editor: TB, ChainCatcher
Without any preheating or significant positive news, cryptocurrency concept stock Bakkt surged over 50% overnight.
Not long ago, Bakkt was marginalized by the market due to customer losses and declining revenue, but now it has suddenly surged into the spotlight, becoming the most eye-catching presence among cryptocurrency stocks. What rhythm did this seemingly coincidental surge tap into? Is it a short-term speculative game, or a signal of a subtle shift in industry trends?
Is Bakkt's explosive growth an opportunity or just emotions?
On May 13, Bakkt's stock price surged over 50% in a short period. This company, once viewed as the 'bridge for traditional finance to enter the cryptocurrency world,' found itself in a predicament of customer loss and shrinking revenue in recent years, and this sudden reversal has attracted market attention. The surface reason is its first-quarter net profit of $7.7 million, marking its first profitability in years. However, a closer look at the financial report reveals that this was mainly due to cost reductions and one-time adjustments, with no significant improvement in core business.
What truly ignited the sentiment was the company's announcement of a new strategy. Bakkt announced a collaboration with DTR, founded by former SoftBank executives, planning to launch AI plugins and stablecoin payment services, entering the popular 'PayFi' track—which combines AI agents with on-chain settlement in a global payment infrastructure. This new narrative combining AI and cryptocurrency quickly stimulated market speculation.
In addition, Bakkt's 'merger concept' has also been reactivated. Although previous acquisition negotiations with Trump's TMTG did not succeed, ICE still holds more than half of its shares, and there are rumors that Apex Fintech may take over. With a very small circulating supply and a high short interest of 23%, a short squeeze quickly unfolded, rapidly driving up the stock price.
From a fundamental perspective, the platform still faces immense pressure. On one hand, Bakkt's major client, the Nasdaq-listed brokerage Webull, will terminate its partnership in June. Bakkt previously provided cryptocurrency trading and custody services to Webull, which accounted for over 70% of Bakkt's total revenue. On the other hand, Bank of America will also end its cooperation with Bakkt, affecting Bakkt's loyalty service sector, which primarily provides point redemption and digital reward solutions for corporate clients.
With the loss of two major clients, Bakkt's revenue structure has become more fragile. This round of explosive growth seems more like a concentrated release of market sentiment rather than a substantive turnaround in fundamentals.
Cryptocurrency stocks are collectively stirring, what is the market betting on?
Bakkt's unusual movements are not an isolated phenomenon. During the same period, the cryptocurrency concept stock sector generally strengthened, with several individual stocks showing significant gains. Coinbase rose 23.97%, TeraWulf increased by 10.06%, Amber Group and DMG Blockchain saw gains close to 10%, and MicroStrategy also rebounded by over 4%. Overall, the cryptocurrency stock sector's weekly increase approached 10%, indicating concentrated investment in this track.
However, more importantly, the market is beginning to reassess the value of cryptocurrency 'infrastructure.' In past cycles of the cryptocurrency market, most funds flowed to exchanges, platform tokens, or mining companies, but now investors are gradually turning their attention to those 'pipeline-like' companies—businesses that provide custody, settlement, clearing, compliance, and risk management services. They are more like the water, electricity, and coal of this ecosystem, with stable income models and are more easily adaptable to traditional financial valuation systems. The explosive growth of Bakkt precisely tapped into this structural preference, and it is not the only one.
Traditional finance is fully entering the market.
The real turning point for the cryptocurrency industry does not lie in the short-term surge of a particular platform's stock price, but in the increasing number of traditional financial institutions choosing to join this game.
Internet brokerages in Hong Kong have already taken the lead. Futu Securities launched cryptocurrency trading services, allowing users to directly recharge and trade mainstream coins like Bitcoin, Ethereum, and USDT through Hong Kong and U.S. stock accounts; Tiger Brokers has launched features for depositing, trading, and withdrawing crypto assets, integrating them with traditional stock trading; Victory Securities has also obtained a license to support cryptocurrency-related businesses, leading the market. Standard Chartered Bank's Hong Kong subsidiary announced participation in the Hong Kong Monetary Authority's stablecoin sandbox with partners, attempting to explore on-chain payment solutions within a compliance framework.
Meanwhile, global payment giants are taking even more aggressive actions. Stripe launched stablecoin accounts and programmable stablecoin USDB, offering services in 101 countries; Visa and Mastercard expanded their integration with partners like Circle, bringing stablecoins like USDC into their payment networks, allowing users to consume on-chain assets through traditional cards; PayPal attracted users to hold PYUSD with a 3.7% yield, attempting to build a settlement closed loop based on stablecoins. Even traditional cross-border remittance companies like MoneyGram are connecting traditional cash and on-chain assets through stablecoin 'Ramps,' covering over 170 countries.
The common direction of these trends points to the fact that traditional finance no longer views cryptocurrency as a monster, but is beginning to actively 'go on-chain.' This is both a response to changing user demands and a pursuit of cost efficiency. Compared to traditional networks with high fees and slow settlements, stablecoins and blockchain technology provide a faster, cheaper, and more transparent infrastructure. And whoever can take the lead in this new system is more likely to maintain a voice in the future financial landscape.
Bakkt's new strategy is a result of aligning with this trend. Although it lags behind giants like Stripe and Visa in terms of scale and technology, as an institution holding a U.S. license with custody and clearing capabilities, it still has the potential to become a merger target or a partner entry point. This is precisely the reason the market is re-evaluating it—not by how much it made today, but by whether it could become the next ticket to entry.
Conclusion
Bakkt's explosive growth is a microcosm of this market trend, but it is not the whole picture. As the capital market begins to reassess the value of cryptocurrency infrastructure, more and more traditional financial institutions are no longer avoiding cryptocurrency technology, 'on-chain finance' is becoming an executable strategy rather than a distant fantasy, and we are witnessing the beginning of a paradigm shift.
In this round, it is not those shouting slogans to gain popularity who are making money, but those who are genuinely building bridges, paving roads, and integrating into the mainstream system who are leaving value.
