Bakkt Jumps 17% As Benchmark Lifts Target To $40
Bakkt Jumps 17% As Benchmark Raises Price Target To $40, Extending 170% Two-Week Rally
Bakkt Holdings (BKKT) shares surged 17% on Tuesday, extending a 170% rally over the past two weeks, after Benchmark more than tripled its 12-month price target to $40.
It marked the first time Bakkt stock traded above $30 since January, a sharp turnaround for the digital asset platform that had struggled below $10 for much of the year. Investors are betting that a combination of new leadership, fresh capital, and streamlined operations could help restore Bakkt’s credibility.
Analyst Upgrade Sparks Optimism
Mark Palmer, an analyst at Benchmark, described Bakkt as “an attractive buy” even after the sharp run-up, highlighting growth potential in crypto custody, stablecoin payments, and treasury management. He noted Bakkt’s valuation remains modest compared to rivals such as Coinbase and Robinhood.
Palmer also praised the recent appointment of veteran fintech investor Mike Alfred to Bakkt’s board, calling it a confidence boost for the firm’s new direction under CEO Akshay Naheta, who took over in August.
According to Yahoo Finance, despite the rebound, Bakkt stock remains down 97% from its all-time high of $1,060 in 2021, underscoring the scale of its challenges. Still, the rally has attracted traders drawing parallels with other digital asset firms that rebounded strongly after prolonged downturns.
Adding to the momentum, Investor’s Business Daily recently upgraded Bakkt’s Relative Strength Rating to 96, placing it among the market’s top-performing stocks over the past year.
Streamlining For Core Growth
Beyond analyst upgrades, Bakkt has reshaped its business model. Earlier this year, it sold its loyalty rewards unit for $11 million to focus on its core infrastructure for crypto custody and tokenized payments.
The company is also pursuing significant fundraising. On June 26, 2024, Bakkt filed an S-3 registration statement with the SEC, seeking to raise up to $1 billion through various securities offerings.
Crucially, Bakkt’s board recently approved a revised corporate investment policy allowing the firm to purchase Bitcoin and other digital assets for its treasury using excess cash or future funding proceeds.
CEO Akshay Naheta emphasized this pivot during a recent investor call, stating: “Digital assets are shifting from speculation to strategy, and Bakkt intends to serve as the bridge between institutions and emerging financial rails.”
Industry analysts believe this dual strategy—strengthening core services while showing long-term confidence in Bitcoin—could attract more institutional partners. However, Bakkt’s S-3 filing also highlighted ongoing financial hurdles, including limited operating history, dependence on a single major client, and intense competition.
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