Crypto revenue tanks 70% for major AI finance company, but its paper gains just delivered a record quarterly profit
Bakkt posted $80.8 million of net income in Q2 2026, versus a $14.7 million loss a year earlier, but the profit was driven mainly by non-cash investment revaluations. A $98.5 million gain from remeasuring Transchem warrants and another $1.4 million legacy warrant gain outweighed operating weakness; excluding those marks, pre-tax results would have been roughly a $18.8 million loss. Underlying crypto-services performance deteriorated. Revenue fell 70% to $170.1 million as client transitions and weaker trading volumes hurt results, while crypto costs and execution, clearing, and brokerage fees were $169.3 million. Operating loss widened to $19.6 million and adjusted EBITDA loss to $11.8 million. Bakkt ended June with $50.7 million of cash and no long-term debt, but first-half operations burned $26.9 million of cash. Financing from equity offerings provided $67.2 million. The quarter showed liquidity, not an operating turnaround.
