2024

United

Bitcoin

when

Bakkt, a digital asset firm once touted as the savior of Bitcoin, has been facing cash troubles despite the price of Bitcoin breaking above $50,000 and the digital asset being valued at more than $1 trillion. Interestingly, US regulators approved the company to proceed with the sale of securities worth $150 million.
As reported earlier by TheCoinRise, Bakkt released an announcement confirming that it was facing cash flow troubles while adding that it<a href="https://thecoinrise.com/bakkt-does-not-have-enough-cash-to-last-the-next-12-months/" rel="noopener noreferrer nofollow"> did not have enough income to go on for the next twelve months</a>. Additionally, the company’s founder,<a href="https://thecoinrise.com/bakkt-president-adam-white-resigns-from-digital-asset-firm/" rel="noopener noreferrer nofollow"> Adam White, resigned in 2021,</a> when its popularity was at its peak.&nbsp;
<h2 id="span-style-font-weight-400-bakkt-approved-to-proceed-with-securities-sale-span">Bakkt Approved to Proceed with Securities Sale</h2>
As per a February 14<a href="https://www.businesswire.com/news/home/20240214536733/en/Bakkt-Shelf-Registration-Statement-Declared-Effective-by-the-SEC" rel="noopener noreferrer nofollow"> announcement</a> from Bakkt, the company confirmed that its “universal shelf” registration statement on Form S-3 was declared effective by the United States Securities and Exchange Commission (SEC), while adding:&nbsp;
“This registration statement allows Bakkt, so long as it is effective, to raise up to an aggregate of $150 million of capital in one or more offerings over the subsequent three years. If Bakkt decides to raise capital in a future offering using such registration statement, Bakkt will describe the specific details of that future offering in a prospectus supplement that is filed with the SEC.”
<h3 id="span-style-font-weight-400-raising-capital-span">Raising Capital</h3>
The company said that the SEC’s approval will provide it with “significant benefits when raising capital in the future.” The plan is to raise $150 million in capital in one or more offerings over three years.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Bakkt Shelf Registration Statement Declared Effective by the SEC: <a href="https://t.co/ekpeVaw0SA" rel="noopener noreferrer nofollow">https://t.co/ekpeVaw0SA</a>
 — Bakkt (@Bakkt) <a href="https://twitter.com/Bakkt/status/1757914144165208440?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 14, 2024</a>
</blockquote>
The digital asset firm stated earlier in February that it sought to sell its securities to raise funds and secure its “long-term vision.” The company is currently experiencing severe cash flow issues.&nbsp;
<h2 id="span-style-font-weight-400-bakkt-lacks-operational-cash-span">Bakkt Lacks Operational Cash</h2>
Bakkt stated in a press statement that it lacked operational cash, adding that it “may not be able to continue as a going concern.” The company was surrounded by a lot of hype because it was owned by Intercontinental Exchange (ICE), the firm that owns the New York Stock Exchange (NYSE). The firm promised to open the doors of the digital asset sector to institutional investors.
<h2 id="span-style-font-weight-400-uncertainty-span">Uncertainty</h2>
Bakkt said that it was uncertain regarding the future of its operations, hinting that it might have to file for bankruptcy if it fails to generate capital. The firm has been<a href="https://thecoinrise.com/bakkt-holding-releases-q4-earnings-lower-than-its-expectations/" rel="noopener noreferrer nofollow"> unable to generate sustainable operating profit</a> and sufficient cash flows.
“There is significant uncertainty associated with our expansion to new markets and the growth of our revenue base given the rapidly evolving environment associated with crypto assets,” said the company.&nbsp;
The post <a href="https://thecoinrise.com/bakkt-approved-to-proceed-with-150m-securities-sale/" rel="noopener noreferrer nofollow">Bakkt Approved to Proceed with $150M Securities Sale</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Bakkt Approved to Proceed with $150M Securities Sale

Table of Contents

TheCoinrise Media

Other articles published on Feb 15, 2024

Telefonica Partners with Chainlink Labs to Enhance Telecom Security on Blockchain

Finance groups urge SEC to revise crypto custody accounting rules

Polygon Boosts Network with Latest Update

Health Systems Prioritize AI Oversight Amidst Rapid Advancements

JPMorgan Says Coinbase Now Neutral

Over 10,000 Ripple Community Vote Smart Contracts Integration on XRP Ledger

Join our free newsletter for daily crypto updates!