Key takeaways:
- The cryptocurrency startup Bakkt claims that regulators have given it permission to sell up to $150 million worth of securities.
- In one or more offers spread over three years, Bakkt stated that permission would enable it to raise a total of $150 million in capital.
The cryptocurrency startup Bakkt claims that regulators have given it permission to sell up to $150 million worth of securities. This announcement comes just one week after the company expressed worries about its balance sheet.
On February 14, the company announced that it had received approval for a “shelf registration,” which is also referred to as a shelf offering. This is the procedure by which a business registers a fresh issue of securities with the Securities and Exchange Commission (SEC) so that the securities can be sold over time gradually without repeat approvals.
In one or more offers spread over three years, Bakkt stated that permission would enable it to raise a total of $150 million in capital. The company stated:
“Bakkt believes the flexibility of a shelf registration on Form S-3 will provide the Company with significant benefits when raising capital in the future,”
This past week, Bakkt, a cryptocurrency custody and trading platform that was formerly seen as Bitcoin’s “saviour” during the 2018 bad market, disclosed that it was running low on cash and might not be able to continue.
In order to fund our long-term ambition, Bakkt stated that it was considering the possibility of raising more money through the public offering of its registered securities. Since going public in October 2021, the company has declared net losses in eight consecutive quarters.
Despite the cryptocurrency market recovering from a challenging 2022, the company’s financial records indicate that through the first three quarters of 2023, it lost $44.9 million, $50.5 million, and $51.7 million.
Following the company’s disastrous $1.59 billion and $323.9 million losses in the third and fourth quarters of 2022, net losses decreased in 2023. Since Q4 2021, the company has incurred net losses of $2.26 billion.
In order to facilitate digital asset transactions and services, Bakkt manages a digital asset trading platform for institutions and has partnered strategically with companies like as Starbucks and Amazon Web Services.
