9 months ago
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Cash-strapped cryptocurrency company Bakkt has been permitted to raise additional funds.
According to a Feb. 14 statement from Bakkt, the company has received permission to raise $150 million by selling its securities in one or more offerings over three years. This comes after the firm raised concerns about its balance sheet in a letter to the Securities and Exchange Commission (SEC) last week.
“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.”
Bakkt statementAt the time, Bakkt said it hoped to potentially raise additional capital by issuing its listed securities on the public markets to fund its long-term vision.
The firm has reported eight consecutive quarters of net losses since its public listing in October 2021. In 2023, Bakkt reported revenue of $348 million for the second quarter, while revenue for the second quarter of the year before was much less – $14 million.
Bakkt said last week that if it fails to raise money through debt financing or equity dilution, it will not have enough funds to continue operations. The uncertainty arose due to the company’s ambitious plans to enter new markets. The firm acknowledged that it can only guarantee significant revenue growth by its historical levels. This could prevent it from achieving sustainable profitability and generating sufficient cash flow without securing additional capital shortly, Bakkt management noted.
