Crypto software firm Bakkt Holdings Inc., a subsidiary of Intercontinental Exchange (parent company of NYSE), is planning to raise up to $1 billion through various securities offerings. These funds could potentially be used to acquire Bitcoin.
Filing with the U.S. Securities and Exchange Commission on Wednesday, Bakkt outlined an intention to offer common stock, securities, debt, warrants, or a combination of these instruments.
“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources,” the filing added. The timing of such purchases will depend on factors including market conditions and business performance.
Bakkt’s Going-Concern Issues
In the filing, Bakkt admitted to having a “limited operating history and a history of operating losses.” The company further declared that “conditions and events… have raised substantial doubt about our ability to continue as a going concern.”
The firm stated its investment policy was updated last month “to enable us to allocate capital into Bitcoin and other digital assets as part of our broader treasury and corporate strategy,” but it has not yet made a purchase.
This so-called shelf registration allows Bakkt to access capital markets rapidly when conditions are deemed favorable.
Bakkt Share Price Volatility
Shares of NYSE-listed Bakkt (up 3% intraday Thursday) are down by approximately 46% year-to-date. A significant drop occurred in March following the departure of major clients Bank of America and Webull.
Bakkt’s Stance on Crypto IPOs
Commenting on recent crypto initial public offerings (IPOs) by firms like Circle, eToro and Gemini, the company expressed optimism on X: “These developments… suggest real momentum is building again in digital assets.” They noted these filings “bring validation, visibility, and maturity to the market.”
Related: Bakkt names new co-CEO amid re-focus on crypto offerings
