Bakkt struggling with crypto trading, says ‘may not be sustainable’

Share this article

Crypto payments and digital assets platform Bakkt soon presented An update to its quarterly report to the Securities and Exchange Commission, citing the nature of risk factors in the crypto industry, warned the regulator that the business “will not be able to continue” for the next 12 months.

“We do not believe that our cash and cash equivalents will be sufficient for our operations during the 12 months following the date of commencement of operations. [this filing]” Bakht said in the updated report.

According to the filing, Bakht has been struggling with his crypto business and is now looking for ways to raise capital. A deleted post from X shows that Bakht has filed an amendment to its Form S-3 filing.

“Currently unable to generate sustained operating profit and sufficient cash flow, we have determined that our future success depends on our ability to raise capital. We are seeking additional financing and evaluating financing options to meet our funding needs,” Bakht said in the filing.

Bakkt was founded in As of 2018, the New York Stock Exchange (NYSE) is owned and operated by Intercontinental Exchange. Despite the bear market at the time, Bakkt's launch was considered one of crypto's first forays into institutional investors. Former U.S. Senator Kelly Loeffler was Buckt's first CEO, serving until 2019. Bakkt generates revenue through trading, security and payment services.

In the year In 2021, Bakkt introduced a digital wallet to rival apps like Venmo and PayPal. Following a merger with special purpose buyout firm VPC Impact Acquisition Holdings, Bakht went public, with its share price soaring above $40. Following the SEC filing, Bakkt stock fell 7.6% on Wednesday, trading at $1.34 after hours. Bakkt's stock is down 37% since its launch.

Share this article