TL;DR
- Bakkt receives SEC clearance to raise $150 million through securities sale.
- The shelf registration statement allows Bakkt to conduct securities offerings over the next three years.
- The company faces financial challenges, but plans to use the funds to finance its expansion and enter new markets.
Bakkt, a cryptocurrency company based in Alpharetta, Georgia, has received the green light from the Securities and Exchange Commission (SEC) to raise up to $150 million through the sale of its securities.
This authorization comes after Bakkt raised concerns about its financial situation in a letter to the SEC last week.
The company has faced financial difficulties, reporting net losses for eight consecutive quarters since going public in October 2021.
Bakkt‘s shelf registration statement on Form S-3 was declared effective by the SEC on February 14, 2024, allowing the company to conduct securities offerings over the next three years.
Bakkt plans to use this flexibility to raise additional capital, which would allow it to finance its ambitious expansion plans and enter new markets.
In 2023, Bakkt reported revenue of $348 million for the second quarter, compared to $14 million a year earlier.
However, despite the increase in revenue, the company still faces significant financial challenges.
They recognize that they can only guarantee revenue growth similar to their historical levels, which could make it difficult to achieve sustainable profitability without securing additional capital in the short term.
Bakkt, is dedicated to developing solutions that enable customers to participate in the crypto economy for the long term
They offer custody, trading and access services to the institutional cryptocurrency market .
SEC approval to raise capital is an important step for the company in its pursuit of financial stability and continued growth.
It is important to note that this press release does not constitute an offer to sell securities, nor does it constitute the solicitation of an offer to buy such securities.
Any offering of securities will be made solely by means of the prospectus included in the registration statement and any applicable prospective supplements filed with the SEC.
Bakkt has gained approval to raise additional funds through the sale of securities, which could provide it with the liquidity needed to move forward with its expansion plans and achieve long-term profitability.
