2024

<p>Bakkt, a leading <a href="https://www.cryptopolitan.com/crypto-valentines-day-2024-happenings/" rel="noopener noreferrer nofollow">crypto</a> custody and trading platform, has received regulatory approval for a substantial shelf offering worth $150 million. This development comes after the firm’s recent disclosure regarding concerns over its financial stability.</p>
<h2 class="wp-block-heading" id="regulatory-approval-secured">Regulatory approval secured</h2>
<p>On February 14, Bakkt announced that it had obtained approval for a shelf registration, also known as a shelf offering, from the Securities and Exchange Commission (SEC). This regulatory green light enables the company to raise $150 million in capital through the issuance of securities over three years.&nbsp;</p>
<p>The shelf registration process allows for the gradual sale of securities without needing separate approval for each offering.</p>
<p><a href="https://twitter.com/Bakkt/status/1757914144165208440" rel="noopener noreferrer nofollow" target="_blank">Bakkt </a>views this approval as a significant step that will provide the company with enhanced flexibility in raising capital for future endeavors. The Form S-3 shelf registration is expected to streamline the capital-raising process, offering Bakkt strategic advantages as it navigates its financial landscape.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Bakkt Shelf Registration Statement Declared Effective by the SEC: <a href="https://t.co/ekpeVaw0SA" rel="noopener noreferrer nofollow" target="_blank">https://t.co/ekpeVaw0SA</a></p>— Bakkt (@Bakkt) <a href="https://twitter.com/Bakkt/status/1757914144165208440?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">February 14, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<h2 class="wp-block-heading" id="financial-concerns-and-long-term-vision">Financial concerns and long-term vision</h2>
<p>Just a week before securing regulatory approval, Bakkt had expressed concerns about its financial position, acknowledging the possibility of being unable to sustain its operations. The company highlighted its intention to explore avenues for additional capital, including issuing registered securities in public markets, to support its long-term vision.</p>
<p>Bakkt’s financial performance has been closely scrutinized, particularly in light of its status as a publicly listed entity since October 2021. Despite the crypto market’s rebound from a challenging 2022, Bakkt reported net losses totaling $44.9 million, $50.5 million, and $51.7 million in the first three quarters of 2023.&nbsp;</p>
<p>Notably, the company’s net losses narrowed in 2023 compared to the significant losses incurred in the third and fourth quarters of 2022.</p>
<h2 class="wp-block-heading" id="strategic-partnerships-and-company-background">Strategic partnerships and company background</h2>
<p>Bakkt operates a digital asset trading platform catering to institutional clients and has forged strategic partnerships with industry giants such as Starbucks and <a href="https://www.cryptopolitan.com/amazon-unveils-film-4-billion-bitfinex-hack/" rel="noopener noreferrer nofollow">Amazon</a> Web Services. Founded in 2018 by Intercontinental Exchange, the New York Stock Exchange parent company, Bakkt, has been instrumental in facilitating digital asset transactions and services.</p>
<h2 class="wp-block-heading" id="market-performance-and-share-price">Market performance and share price</h2>
<p>The news of regulatory approval spurred a positive response in the market, with Bakkt’s share price increasing by 7.8% to $1.03 following the announcement. However, despite this uptick, the company’s share price remains down by over 51% year-to-date. Notably, Bakkt’s share price experienced a significant decline from its peak of $42 in October 2021, marking a turbulent trajectory in the market.</p>

Bakkt receives regulatory approval for $150 million shelf offering

Table of Contents

Cryptopolitan_News

Other articles published on Feb 15, 2024

ARK Invest sells shares in Coinbase and Robinhood amidst positive market performance

Health Systems Prioritize AI Oversight Amidst Rapid Advancements

Cryptocurrency Move from Türkiye-Based Mobile Phone Company Reeder!

Spanish Telecommunications Giant Telefonica Announced A Partnership With This Altcoin!

Breaking: Bitcoin ETF Net Inflow Slows To $340 Mln, What’s Next For BTC Price?

Genesis Granted Court Approval to Sell GBTC Shares Worth $1.3 Billion

Join our free newsletter for daily crypto updates!