Bakkt Discloses Insufficient Funds to Survive Next 12 Months in SEC Filing

Bakkt launched its institutional crypto assets trading platform in 2018, in a turn of events, the company recently disclosed inability to continue on February 7th.

The institutional crypto assets trading platform with backing from the Intercontinental Exchange (ICE) filed an amendment with the Securities and Exchange Commission for its quarterly report. As per a section of the filing, a warning stipulated that they may “not be able to continue as a going concern’ More details throughout the filing revealed the institutional assets trading platform may lack sufficient funds to remain in business for the next 12 months. 

Bakkt’s launch in 2018 was surrounded by massive hype given its backing by NYSE-owner, the Intercontinental Exchange. During its opening, many perceived it as the doorway to institutional investment into Bitcoin amidst the then bear market.

The company also warned it might be unable to generate enough cash flows or even engage in sustainable profitable ventures. Thereby concluding that the future success of the institutional crypto assets platform was pegged to its ability to raise capital.

According to the recent filing with the SEC, Bakkt is aiming to raise more capital and issue registered securities to public markets. This move will enable the digital assets trading platform to pursue its long-term vision. If affected, Bakkt will be able to issue registered securities worth upto $150 million to public markets. 

Bakkt posted about its plan on X but deleted the post several hours later. Luckily, NewsDroom managed to screenshot the post before it disappeared. 

Bakkt is an institutional crypto assets platform and payment application that facilitates institutions to buy, sell, spend or store cryptocurrency assets. The platform has forged several partnerships in 5 years of its existence including a collaboration with Amazon Web Services (AWS) and Starbucks.

Bakkt became a public tradeable company in 2021. At the time, a Bakkt share price was going for $40 per piece.