BKKT Stock: Why The Price Surged

By Amit Chowdhry ● Oct 26, 2021
  • The stock price of Bakkt Holdings Inc (NYSE: BKKT) increased by 234.43% yesterday. This is why it happened.

The stock price of Bakkt Holdings Inc (NYSE: BKKT) increased by 234.43% yesterday and it is up more than 49% pre-market today. Investors are responding very positively to the company announcing a deal with Mastercard and Fiserv. 

Mastercard Deal

At the Money20/20, Mastercard and Bakkt had announced a multifaceted partnership to make it easier for merchants, banks and fintechs in the U.S. to embrace and offer a broad set of cryptocurrency solutions and services. And consumers will experience expanded access to the digital asset ecosystem.

Bakkt is extending Mastercard’s ecosystem of cryptocurrency partners enabling Crypto-as-a-Service, which provides quick access to cryptocurrency capabilities. And through the power of the Mastercard network and Bakkt’s trusted digital asset platform, Mastercard partners will be able to offer cryptocurrency solutions. These include the ability for consumers to buy, sell, and hold digital assets through custodial wallets powered by the Bakkt platform and streamlined issuance of branded crypto debit and credit cards.

Mastercard is also going to integrate crypto into its loyalty solutions, enabling its partners to offer cryptocurrency as rewards and create fungibility between loyalty points and other digital assets. And this means that consumers can earn and spend rewards in cryptocurrency instead of traditional loyalty points and seamlessly convert their crypto holdings to pay for purchases. This is the latest move by Mastercard for bringing innovative loyalty options to consumers that align with their passion points.

Fiserv Deal

Fiserv also announced a strategic relationship with Bakkt. And the combination of expansive capabilities from Fiserv, including the ability to move funds into and out of mobile wallets, with Bakkt’s digital asset platform will enable practical uses of crypto and emerging asset classes.

A future integration of Bakkt into the Carat omnichannel ecosystem from Fiserv will enable businesses to pursue new options for B2B and B2C payouts, loyalty programs, and transactions, all with crypto assets accessible via a digital asset wallet. And merchants will be able to deliver innovative consumer experiences through a simple integration to Carat and roll out new digital asset offerings that are right for their brand and customers.

Along with innovating on new digital capabilities for merchants, Fiserv and Bakkt plan to introduce Bakkt technology that supports consumers’ ability to buy, sell, and hold crypto assets to Fiserv financial institution clients.

Key Quotes About Mastercard Deal

“Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value and impact every day. Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences.”

— Sherri Haymond, executive vice president, Digital Partnerships at Mastercard

“We’re incredibly excited to partner with Mastercard to bring crypto loyalty services to millions of consumers. As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy increasing demand for crypto, payment and rewards flexibility.”

— Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt

Key Quotes About Fiserve Deal

“Carat is a trusted solution for businesses, including fintechs, that want to access a broad range of commerce-enabling capabilities, such as the ability to accept and disburse funds, from a single provider. Bakkt will be leveraging these capabilities while also working with us to build emerging merchant experiences that help bring crypto assets into the mainstream.”

— Nandan Sheth, Head of Carat and Digital Commerce at Fiserv

“This partnership with Fiserv marks an important moment as we together create opportunities for consumers to seamlessly and at their own pace introduce digital assets into their daily habits. Whether it be buying bitcoin from within a financial institution’s app, redeeming loyalty points from their favorite restaurant for merchandise, using a digital asset wallet, or getting paid in bitcoin for their side gig grocery delivery runs, consumers will have new opportunities to participate in the digital economy.”

— Sheela Zemlin, Chief Revenue Officer at Bakkt

“Fiserv is in a unique position to connect merchants and financial institutions utilizing a unified digital asset platform, laying the foundation for an integrated digital asset ecosystem that can bring value and convenience to our clients and their customers.”

— Sunil Sachdev, Head of Fintech at Fiserv

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.