Bakkt receives green light to raise $150m through its securities sale

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Money-strapped cryptocurrency firm Bakkt has been permitted to boost further funds.

In response to a Feb. 14 statement from Bakkt, the corporate has acquired permission to boost $150 million by promoting its securities in a number of choices over three years. This comes after the agency raised considerations about its steadiness sheet in a letter to the Securities and Alternate Fee (SEC) final week.

“Bakkt believes the pliability of a shelf registration on Type S-3 will present the Firm with vital advantages when elevating capital sooner or later.”

Bakkt assertion

On the time, Bakkt stated it hoped to doubtlessly elevate further capital by issuing its listed securities on the general public markets to fund its long-term imaginative and prescient.

The agency has reported eight consecutive quarters of internet losses since its public itemizing in October 2021. In 2023, Bakkt reported income of $348 million for the second quarter, whereas income for the second quarter of the 12 months earlier than was a lot much less – $14 million.

Bakkt said final week that if it fails to boost cash via debt financing or fairness dilution, it is not going to have sufficient funds to proceed operations. The uncertainty arose because of the firm’s formidable plans to enter new markets. The agency acknowledged that it may possibly solely assure vital income development by its historic ranges. This might stop it from reaching sustainable profitability and producing enough money movement with out securing further capital shortly, Bakkt administration famous.

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