Bitcoin

<p>Once touted as the ‘Bitcoin saviour’, crypto firm Bakkt has recently announced that it’s getting dry of cash to continue any further operations. The announcement came on Wednesday, February 7, through its filing with the U.S. Securities and Exchange Commission (SEC).</p> 
<h2 id="bakkt-raises-concerns-for-investors">Bakkt Raises Concerns for Investors</h2> 
<p>In a recent filing with the Securities and Exchange Commission (SEC), Bakkt expressed doubts about its financial stability in the coming year. The company stated that its current cash reserves, including restricted cash, may not be adequate to sustain its operations for the next 12 months.</p> 
<p>The uncertainty arises from the company’s ambitious plans to <a href="https://coingape.com/crypto-firm-bakkt-expands-globally-when-bitcoin-etfs-are-driving-market-evolution/" target="_blank" rel="noopener">expand into new markets</a> and grow its revenue base within the rapidly evolving landscape of cryptocurrency assets. Given these challenges, the company admitted it cannot guarantee substantial revenue growth beyond its historical levels. Thus, it could hinder its ability to achieve sustainable profitability and generate sufficient cash flow without securing additional capital in the near term.</p> 
<p>Furthermore, Bakkt anticipates some operating losses along with the existing cash burn to continue. If they run dry of sufficient funds either through debt or equity arrangements, Bakkt might lose its ability to maintain sufficient liquidity and effectively operate the business. This raises major concerns about Bakkt’s ability to continue operations. Thus, investors should be cautious going forward. In its <a rel="nofollow" href="https://www.sec.gov/Archives/edgar/data/1820302/000182030224000011/bakkt-20230930.htm" target="_blank">filing</a>, the digital assets platform noted:</p> 
<blockquote>
 <p>“We have limited accounting and finance personnel and other resources and must develop our own internal controls and procedures consistent with SEC regulations. We intend to continue to evaluate actions to enhance our internal controls over financial reporting, but there is no assurance that we will not identify control deficiencies or material weaknesses in the future”.</p>
</blockquote> 
<h2 id="stock-price-tank-7-5">Stock Price Tank 7.5%</h2> 
<p>Digital assets platform Bakkt went public three years back in 2021. Soon after yesterday’s filing, the Bakkt stock witnessed strong selling pressure in the aftermarket hours tanking 7.5% trading at $1.34.</p> 
<p>Founded by Intercontinental Exchange (ICE), a company that owns major derivatives exchanges and the New York Stock Exchange (NYSE), Bakkt initially aimed to facilitate Bitcoin (BTC) payments for Starbucks customers.</p> 
<p>Kelly Loeffler, who later became a U.S. Senator, served as its inaugural CEO. In 2021, Bakkt launched a digital wallet, which was later discontinued as the company pivoted its focus towards providing business-to-business technology services.</p> 
<p>The post <a href="https://coingape.com/crypto-firm-bakkt-is-cash-strapped-can-shutdown-in-12-months/">Crypto Firm Bakkt Is Cash Strapped, Can Shutdown In 12 Months</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Crypto Firm Bakkt Is Cash Strapped, Can Shutdown In 12 Months

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