Bakkt leads the way, are crypto stocks starting to collectively rise again?

Author: Scof, ChainCatcher

Editor: TB, ChainCatcher

Without any preheating or significant positive news, the crypto concept stock Bakkt surged over 50% overnight.

Not long ago, Bakkt was marginalized by the market due to customer losses and declining revenues, but it suddenly shot up to trending topics, becoming the brightest star among crypto stocks. What rhythm did this seemingly accidental surge hit? Is it a short-term speculative game, or a signal that the industry trend is quietly shifting?

Is Bakkt's Surge an Opportunity or Emotion?

On May 13, Bakkt's stock price surged over 50% in a short period. This company, once seen as the "bridge for traditional finance to enter the crypto world," has faced customer losses and revenue shrinkage in recent years. This sudden reversal has attracted market attention. The superficial reason is that it achieved a net profit of $7.7 million in the first quarter, marking its first profit 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 emotion was the company's announcement of a new strategy. Bakkt announced a partnership with DTR, founded by former SoftBank executives, planning to launch AI plugins and stablecoin payment services, entering the popular "PayFi" track—combining AI agents with on-chain settlement for global payment infrastructure. This new narrative of combining AI and crypto quickly sparked market speculation.

Additionally, Bakkt's "merger and acquisition concept" has been reactivated. Although previous acquisition talks with Trump’s TMTG did not materialize, ICE still holds more than half of its shares, and there are rumors that Apex Fintech may take over. With a very small circulation and a short interest ratio as high as 23%, a short squeeze quickly unfolded, rapidly driving up the stock price.

From a fundamental perspective, the platform still faces enormous pressure. On one hand, Bakkt's major client, the Nasdaq-listed brokerage Webull, will terminate its partnership with Bakkt in June. Bakkt had provided cryptocurrency trading and custody services for Webull, which accounted for more than 70% of Bakkt's total revenue. On the other hand, Bank of America will also end its partnership with Bakkt, affecting Bakkt's loyalty service sector, which mainly provides solutions for points redemption and digital rewards to corporate clients.

With the loss of these two major clients, Bakkt's revenue structure has become more fragile. This surge appears more like a concentrated release of short-term market emotion rather than a substantial turning point in fundamentals.

Crypto Stocks Stirring, What is the Market Betting On?

Bakkt's unusual movement is not an isolated phenomenon. During the same period, the crypto concept stock sector generally strengthened, with several individual stocks showing significant gains. Coinbase rose by 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 crypto stock sector had a weekly increase of nearly 10%, indicating concentrated capital allocation in this track.

However, more importantly, the market is beginning to reassess the value of crypto "infrastructure." In past cycles of the crypto market, most capital flowed into exchanges, platform tokens, or mining companies, but now investors are gradually turning their attention to "pipeline" companies—those providing custody, settlement, clearing, compliance, risk control, and other services. They resemble the utilities of this ecosystem, with stable revenue models and easier adaptability to traditional financial valuation systems. Bakkt's surge has precisely hit this structural preference, and it is not the only one.

Traditional Finance is Fully Entering the Game

The real turning point for the crypto industry is not in the short-term price surge of a particular platform, but in the increasing number of traditional financial institutions choosing to join this game.

Internet brokerages in Hong Kong have taken the lead. Futu Securities launched cryptocurrency trading services, allowing users to directly recharge and trade mainstream coins like Bitcoin, Ethereum, and USDT through their Hong Kong and US 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 licenses to support crypto asset-related businesses, staying ahead of the market. Standard Chartered Bank's Hong Kong subsidiary announced participation in the Hong Kong Monetary Authority's stablecoin sandbox, attempting to explore on-chain payment solutions within a compliant framework.

At the same time, global payment giants are taking even more aggressive actions. Stripe launched stablecoin accounts and the programmable stablecoin USDB, offering services in 101 countries; Visa and Mastercard are expanding their integration with partners like Circle, incorporating stablecoins like USDC into their payment networks, allowing users to consume on-chain assets through traditional cards; PayPal is attracting users to hold PYUSD with a 3.7% yield, attempting to build a settlement closed loop based on stablecoins. Even established 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 movements is that traditional finance no longer views crypto as a threat but is actively "on-chaining" itself. This is both a response to changing user demands and a pursuit of cost efficiency. Compared to the high fees and slow settlements of traditional networks, stablecoins and blockchain technology provide a faster, cheaper, and more transparent infrastructure. Those who can secure a position in this new system are more likely to retain their voice on the future financial map.

Bakkt's new strategy is a result of aligning with this trend. Although it is not as large or technologically advanced as giants like Stripe and Visa, as an institution holding licenses across the U.S. with custody and clearing capabilities, it still has the potential to become a target for mergers or a gateway for cooperation. This is why the market is re-evaluating it—not for how much it earned today, but for whether it could become the next ticket to entry.

Conclusion

Bakkt's surge is a microcosm of this wave of market activity, but it is not the whole picture. As the capital market begins to reassess the value of crypto infrastructure, and more traditional financial institutions no longer shy away from crypto technology, "on-chain finance" is becoming an executable strategy rather than a distant fantasy. We are witnessing the beginning of a shift in an era.

This round is not about those who shout slogans to gain popularity making money, but about those who truly build bridges, pave roads, and connect to mainstream systems leaving value.