Sportswear giant Nike has quietly sold its digital products subsidiary RTFKT, a company it acquired in 2021 to spearhead its foray into NFTs and virtual fashion. The sale was finalized on December 16, 2025, according to a report by OregonLive. Nike has not disclosed the buyer or the financial terms of the deal.
This move marks a definitive retreat from Nike's ambitious Web3 strategy. RTFKT, known for creating virtual sneakers and digital collectibles, had already announced it would wind down its Web3 services in January 2025. The sale concludes a venture that began under former CEO John Donahoe, who pushed the company into digital sales and virtual products.
The strategic shift is attributed to new leadership under CEO Elliott Hill, who took charge in late 2024. Hill has refocused Nike on its core sports products, footwear, and rebuilding relationships with wholesale partners like Dick’s Sporting Goods and Foot Locker. The sale of RTFKT aligns with this pivot away from owning and operating a full-scale Web3 studio.
The exit coincides with broader challenges for Nike. Its Converse brand reported a 30% drop in quarterly sales in December 2025, sparking analyst speculation about potential portfolio changes. Furthermore, the shutdown of RTFKT has led to legal action, with an investor filing a lawsuit accusing Nike of a "rug pull" that allegedly devalued virtual sneaker assets. Nike moved to dismiss the case in December.
Nike's departure from the NFT space reflects wider market weakness. The overall NFT market cap has fallen over 67% in the past year, with monthly sales dropping to around $320 million in November 2025. Major platforms like OpenSea are pivoting away from an NFT-only model, while others like X2Y2 have shut down NFT operations entirely.
Despite selling RTFKT, Nike maintains a lighter digital footprint through partnerships with video game companies like Fortnite and EA Sports, focusing on in-game wearables rather than standalone NFT production.
