Core Viewpoint - Clear Street initiated coverage of Bakkt (BKKT) with a buy rating and a $14 price target, indicating a 44% upside potential after a significant year-to-date decline of over 60% compared to an 11% gain for the S&P 500 index [1][6] Group 1: Business Strategy and Structure - Bakkt has streamlined its operations by shedding non-core units like Loyalty and Custody, focusing on becoming a blockchain-native payments platform, currently trading at 2.9x projected 2027 EV/EBITDA [2] - The company's business model is built on two main pillars: Crypto Services for institutions and the Digital Transfer and Remittance (DTR) platform, which aims to establish stablecoin payment infrastructure [3] Group 2: Market Potential and Financial Projections - Bakkt is positioned to capture a share of the $190 trillion cross-border payments market, with analysts projecting a 14% annual revenue growth through 2027, driven by the DTR platform [3] - Stablecoin transactions are expected to yield nearly double the margin of crypto services, leading to a projected gross profit growth of 66% annually [4] - Adjusted EBITDA is anticipated to turn positive by early 2026, reaching $49 million by 2027, supported by a $60 million cost reset [4] Group 3: Expansion Plans and Compliance - The DTR platform is set to launch in 36 countries by late 2025 and expand to over 90 countries in 2026, with transaction volume forecasted to reach $2.6 billion by 2027 [4] - Bakkt's institutional-first model targets regulated partners such as remittance firms and neobanks, leveraging its BitLicense and over 50 state money transmitter licenses to establish a strong compliance framework in the U.S. [5]