Bakkt struggles with crypto business, says it might ‘not be able to continue’
Share this article
Crypto payments and digital assets platform Bakkt recently filed an amendment to its quarterly report to the Securities and Exchange Commission, warning the regulator that it may “not be able to continue” its business over the next 12 months, citing the changing nature of risk factors in the crypto industry.
“We do not believe that our cash and restricted cash are sufficient to fund our operations for the 12 months following the date of [this filing],” Bakkt said in the amended report.
According to the filing, Bakkt has been experiencing struggles with its crypto business and is now seeking ways to raise capital. A deleted post from X indicates that Bakkt also amended a Form S-3 filing, which allows the firm to issue up to $150 million worth of securities that could be used to ease its limited cash flow and fund its “long-term vision.”
“As we are currently unable to generate sustainable operating profit and sufficient cash flows, we have determined that our future success will depend on our ability to raise capital. We are seeking additional financing and evaluating financing alternatives in order to meet our cash requirements,” Bakkt said in the filing.
Bakkt was established in 2018 by Intercontinental Exchange, which owns and operates the New York Stock Exchange (NYSE). Bakkt’s launch was regarded as one of the first forays of crypto into institutional investors despite the impending bear market at the time. Former US Senator Kelly Loeffler was Bakkt’s first CEO, serving until 2019. Bakkt generated revenue through trading, custody, and payment services.
By 2021, Bakkt had introduced a digital wallet rivaling apps like Venmo and PayPal. Following a merger with special purpose acquisition company VPC Impact Acquisition Holdings, Bakkt went public, with share prices spiking to over $40. Following its SEC filing, Bakkt’s stock dropped 7.6% on Wednesday, trading after-hours at $1.34. Bakkt’s stock is down 37% since the year opened.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.