Bakkt has approved a $150 million bond sale to stem its cash flow
Cash-poor crypto firm Bakkt said it has received regulatory approval to raise up to $150 million in a securities sale, a week after the firm disclosed concerns about its balance sheet.
In the year On February 14, the company said it had received approval for a “shelf registration,” also known as a shelf offering — a process by which the company registers new securities issues that it can gradually sell with the Securities and Exchange Commission without requiring separate approval each session.
Bakkt said the approval will allow Bakkt to raise a total of 150 million in capital through one or more offerings.
“Bakkt believes that the flexibility of the shelf registration on Form S-3 will significantly benefit the company as it raises capital in the future,” the company said.
Bakkt Shelf registration statement announced effective by SEC: https://t.co/ekpeVaw0SA
— Bakkt (@Bakkt) February 14, 2024
Bakkt, which was considered to be the ‘savior' of Bitcoin during the 2018 bear market, said that the cryptostody and trading platform saw a decrease in cash last week and as a result “may not be able to continue”.
Bakht said at the time that he was looking to raise additional capital by issuing securities in the public markets to “fund our long-term vision.”
The firm has reported eight consecutive quarters of losses since going public in October 2021.
The company's financial data shows that in the first three quarters of 2023, the company made $44.9 million, $50.5 million and $51.7 million, respectively, despite the crypto market recovering from a tough 2022.
The company narrowed its net loss in 2023 after posting devastating losses of $1.59 billion and $323.9 million in the third and fourth quarters of 2022, respectively. The company recorded a net loss of $2.26 billion as of Q4 2021.
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Bakkt operates a digital asset trading platform for institutions and has formed several strategic partnerships with the likes of Starbucks and Amazon Web Services to enable digital asset trading and services.
The company was founded in As of 2018, it is owned by the Intercontinental Exchange, a United States-based company that owns the New York Stock Exchange.
Prior to the news, Bakkt (BKKT) shares were up 7.8% to $1.03 on Google Finance. However, it has declined by more than 51 percent by 2024 so far.
BKKT peaked at $42 on October 29, 2021, but dropped to $3.61 the following January and began a gradual downward spiral soon after.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
