Bakkt Holdings Inc., a crypto software firm, is looking to raise up to $1 billion through different types of securities offerings to support Bitcoin acquisitions.
As a subsidiary of the Intercontinental Exchange, which owns the New York Stock Exchange, Bakkt filed Form S-3 with the U.S. Securities and Exchange Commission on Thursday, outlining its plans to offer common stock and various securities.
The company indicated that it could issue as much as $1 billion in a mix of Class A common stock, preferred stock, debt securities, and warrants, among other asset combinations.
In its filing, Bakkt mentioned it updated its investment policy earlier this month, stating that “capital can be allocated to Bitcoin and other digital assets as part of its broader financial and corporate strategy,” although no purchases have been made yet.
“We may acquire Bitcoin or other digital assets using excess cash, revenue from future stock or debt financing, or other capital sources,” the filing noted.
This so-called shelving registration allows Bakkt to quickly access the capital market when conditions are favorable, which is critical given the company’s history of losses and ongoing concerns.
Bakkt’s Ongoing Challenges
Founded in 2018, Bakkt acknowledged in its filing that it has a “restricted operating history and a history of operating losses.”
The filing included specific warnings about future operations, noting that “conditions and events raised substantial doubts about their ability to continue as a going concern.”
The company has confirmed that the timing and extent of cryptocurrency purchases will depend on market conditions, capital market acceptance, business performance, and other strategic factors.
Bakkt’s Stock Price Troubles
Bakkt’s share price, listed on the NYSE, rose 3% to $13.33 on Thursday, according to Google Finance. However, shares have dropped 46% since the year’s start.
In March, Bakkt’s shares fell 30% after it revealed that its two largest clients, Bank of America and Webull, had not renewed their commercial contracts.
Bakkt’s Optimism amid Crypto IPOs
The company remarked on recent crypto IPO filings from firms like Circle, Etoro, and Gemini, stating that “it’s the latest in a series of moves that suggest they’re being built again on digital assets.”
“These developments bring validation, visibility, and maturity to the market,” they added.
