Bakkt Surges: Are Crypto Stocks Starting a Second Wave?

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The sudden 50%+ surge in Bakkt’s stock price caught many investors off guard. With no major announcements or market-moving news, the rally defied conventional logic—yet it wasn’t entirely random. Behind the explosive move lies a shifting narrative in the crypto ecosystem: one where infrastructure, convergence with AI, and traditional finance adoption are becoming central themes.

This article explores what’s behind Bakkt’s unexpected momentum, why crypto-related stocks are regaining investor interest, and how traditional financial institutions are quietly building the foundation for a new era of PayFi, blockchain payments, and digital asset integration.

Why Bakkt Suddenly Soared

On May 13, Bakkt’s shares skyrocketed over 50% in a matter of hours. The company, once sidelined due to declining revenue and customer attrition, became the talk of Wall Street and crypto circles alike.

At first glance, the catalyst appeared to be its Q1 earnings report: a rare $7.7 million net profit—the first in years. But a closer look reveals that this profitability stemmed largely from aggressive cost-cutting and one-time accounting adjustments, not a revival of core operations.

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The real spark came from Bakkt’s new strategic direction. The firm announced a partnership with DTR, a venture co-founded by a former SoftBank executive, to launch AI-powered plugins and a stablecoin-based global payment service. This positions Bakkt at the intersection of two of today’s hottest trends: artificial intelligence and blockchain finance, collectively known as PayFi—a fusion of AI agents, programmable money, and instant cross-border settlement.

This “new narrative” reignited speculative interest. But there’s more beneath the surface.

The Short Squeeze Effect

Bakkt also became a prime candidate for a short squeeze. With a small float and an unusually high short interest—over 23% of its shares sold short—any positive sentiment could trigger rapid upward pressure. Rumors of potential acquisition by Apex Fintech further fueled speculation, especially given that ICE still holds a majority stake.

While the Trump-affiliated TMTG deal fell through, the market remains alert to consolidation opportunities in the crypto infrastructure space. Bakkt’s full U.S. regulatory licenses, including custody and clearing capabilities, make it a valuable asset—even if its current revenue model is under strain.

Cracks Beneath the Surface: Client Exodus Looms

Despite the optimism, Bakkt faces serious operational challenges.

Two major clients are preparing to exit:

These losses threaten to destabilize Bakkt’s already fragile income structure. Without diversified revenue streams, the company remains vulnerable—even as its stock soars.

So is this rally sustainable? Or is it merely a reflection of market psychology?

Crypto Stocks on the Move: A Broader Trend

Bakkt’s surge wasn’t isolated. Across the board, crypto-related equities showed strength during the same period:

Collectively, the crypto stock sector gained nearly 10% in a single week—a sign of renewed capital inflow.

But more importantly, investor focus is shifting.

Instead of chasing volatile exchange tokens or speculative mining plays, capital is flowing into companies that provide essential crypto infrastructure: custody solutions, settlement layers, compliance tools, and risk management systems. These “pipes and plumbing” players resemble utilities in the digital economy—less flashy than exchanges but more resilient and aligned with traditional financial valuation models.

Bakkt fits this mold. So do others like Coinbase (through its institutional services) and Kraken (privately held but expanding into clearing).

Traditional Finance Goes Onchain

The real story isn’t just about stock prices—it’s about institutional adoption.

Across Asia and the West, traditional financial players are no longer treating crypto as fringe tech. They’re integrating it into their core offerings.

Hong Kong Leads the Charge

These moves signal a broader shift: crypto is being treated not as a separate asset class, but as part of mainstream financial infrastructure.

Global Giants Accelerate Adoption

Meanwhile, global payment leaders are pushing deeper into blockchain:

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This isn’t experimentation—it’s execution. The driving forces? Lower transaction costs, faster settlement, and growing consumer demand for seamless digital asset access.

The Rise of PayFi: Where AI Meets Payments

Bakkt’s pivot toward AI-driven payment infrastructure taps into an emerging megatrend: PayFi.

Short for Payment Finance, PayFi refers to intelligent systems where:

Imagine an AI assistant booking your flight, paying in USDC via a Visa-linked card, and settling with airlines in real time—all without human input. That future is closer than many think.

And Bakkt isn’t alone. Companies like Stripe, PayPal, and even Apple (through rumored wallet upgrades) are positioning themselves at this convergence point.

FAQs: Your Questions Answered

Why did Bakkt's stock jump if it's losing major clients?

While Bakkt is losing key clients like Webull, the market often prices in future potential rather than current fundamentals. The combination of a new AI-payments strategy, acquisition rumors, and a high short interest created perfect conditions for a speculative rally—even amid underlying business risks.

Is Bakkt profitable now?

Technically yes—it reported a $7.7 million net profit in Q1 2025. However, this was driven more by cost reductions and non-operational adjustments than growth in core revenue. True profitability hinges on successful execution of its new PayFi strategy.

What is PayFi?

PayFi stands for Payment Finance. It combines artificial intelligence, stablecoins, and blockchain settlement to create autonomous, global payment systems. Think AI bots making purchases on your behalf using programmable money—fast, cheap, and borderless.

Are other crypto infrastructure stocks worth watching?

Yes. Beyond Bakkt, companies like Coinbase (institutional custody), Silvergate (before its collapse), and newer entrants like Anchorage Digital (backed by Visa) represent critical nodes in the evolving financial stack. Look for firms with licenses, compliance frameworks, and recurring revenue models.

Can traditional finance and crypto coexist?

Absolutely—and they already are. From JPMorgan’s Onyx network to Visa’s USDC integrations, traditional institutions are adopting blockchain selectively but strategically. The goal isn’t to replace legacy systems overnight but to enhance efficiency where it matters most: cross-border payments, settlement speed, and financial inclusion.

Is this another crypto bubble?

Not necessarily. Unlike 2017 or 2021’s retail-driven manias, today’s movement is characterized by institutional participation, regulated products, and real-world use cases like stablecoin remittances and AI-driven finance. While valuations can be frothy, the foundation is more robust.

Final Thoughts: Building Bridges, Not Hype

Bakkt’s surge may seem irrational on the surface—but it reflects a deeper truth: investors are betting on infrastructure, not just speculation.

As AI merges with finance and stablecoins become mainstream payment tools, companies that provide secure, compliant, and scalable bridges between traditional finance and blockchain will gain outsized importance.

This isn’t about who shouts the loudest. It’s about who builds the most durable roads into the future of money.

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The era of “chain-agnostic” finance is beginning—and those laying the rails stand to benefit most.