Bakkt Files $1B Shelf Registration Amid Eyeing Bitcoin Investment
The post Bakkt Files $1B Shelf Registration Amid Eyeing Bitcoin Investment appeared on BitcoinEthereumNews.com.
Crypto software firm Bakkt Holdings Inc. is looking to raise up to $1 billion through various types of securities offerings, which could be used to fund Bitcoin purchases. The company, a subsidiary of The Intercontinental Exchange, which owns the New York Stock Exchange, filed a Form S-3 with the US Securities and Exchange Commission on Thursday, revealing its intentions to offer common stock and securities. The firm said it could issue up to $1 billion of any combination of Class A common stock, preferred stock, debt securities, warrants, or combinations of these assets. The filing stated that Bakkt updated its investment policy earlier this 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 yet to make its first purchase. “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 so-called shelf registration allows Bakkt to quickly access capital markets when conditions are favorable, which is particularly important given its history of losses and going-concern issues. An excerpt of Bakkt’s regulatory filing. Source: SEC Bakkt’s going-concern issues Bakkt, founded in 2018, admitted in the filing that it had a “limited operating history and a history of operating losses.” The filing also contained a very specific warning about future operations in that it had “identified conditions and events that raised substantial doubt about our ability to continue as a going concern.” Related: Bakkt names new co-CEO amid re-focus on crypto offerings The firm confirmed that the timing and magnitude of any crypto purchases will depend on market conditions, capital market receptivity, business performance, and other strategic considerations. Bakkt share price woes The NYSE-listed Bakkt saw its share price rise 3%…
