Bakkt can be created within a year, says a new report

Bakht, a publicly traded company whose services include trading and software solutions for companies owning cryptocurrencies — as well as redeeming loyalty points unrelated to crypto — may not have enough cash reserves to stay in business. for the next 12 months.

The company was founded by the Intercontinental Exchange (ISA), which owns the New York Stock Exchange, and later began trading its shares publicly. In the year In a statement issued in 2021 – the year Bakkt goes public – ICE still owns a 68% stake in the company.

A constantly changing mission

The company was originally founded in 2018 to enable Starbucks and other corporations to accept crypto as payment from customers. At that time, Bakkt was announced as part of introducing large businesses to Bitcoin, allowing investors to buy crypto in a board-approved manner.

The company grew rapidly, providing services to more and more companies, eventually culminating in the introduction of a digital wallet in 2021.

However, the wallet did not last long. In the year In February 2023, Bakht announced that it would discontinue services for the app to focus on business-to-business solutions instead.

“As we continue to pursue our B2B2C strategy, we are focused on providing our partners and customers with seamless solutions that best meet their needs. The rollout of the app ensures that we support our partners and customers' relationships with their customers. With this move, we will focus our investments on core solutions that are product-market fit and scaled quickly.” .

But this strategy seems to have failed – according to a new announcement to the SEC.

Updated quarterly report

According to an update to Bakkt's quarterly report to the SEC, the company is currently strapped for cash and warned the agency that it may not be able to continue operations for the next 12 months or more.

“As we expand into new markets and grow our revenue base, there is significant uncertainty associated with the rapidly growing environment associated with crypto assets.”

According to a now-deleted post on X, Bakkt has filed an S-3 filing that — if approved — would allow it to sell up to $150 million in equity, which should keep it in business.

It is not clear whether the deletion was because this information was better kept secret or because other factors were at play.