Bakkt Plans $1 Billion Fundraising for Bitcoin Investments
Bakkt Holdings Inc. has announced plans to raise $1 billion through a mixed securities offering. The funds will be used to buy Bitcoin.This move is part of the company’s updated treasury strategy.
The crypto software firm filed with the U.S. Securities and Exchange Commission on June 26. The filing allows Bakkt to issue various securities over time. These include common stock, preferred stock, debt securities, warrants, or units. The timing and scale of these purchases will depend on market conditions and business performance.
Bakkt may use the proceeds from future financings to buy Bitcoin or other digital assets.The firm’s new investment policy now permits such acquisitions. However, no purchases have been made yet.
Bakkt offers crypto trading and custody solutions. It went public in 2021 via a SPAC merger. The firm is exploring financing options like convertible notes or bonds to support these plans.
The pivot to a Bitcoin treasury strategy aligns Bakkt with a growing trend among corporates and public entities allocating reserves into digital assets. The decision may aim to boost investor confidence and strengthen its position in the crypto sector.
Bakkt shares rose 3% on Thursday to $13.33. But the stock remains down 46% year-to-date. The firm has faced pressure since March when its shares plunged 30% after two of its largest clients did not renew their agreements. The firm reported heavy losses and flagged concerns over its ability to continue operations without fresh capital.
Founded in 2018,Bakkt offers crypto trading and custody solutions. The firm has been under pressure since March.The latest advancement comes after a turbulent year.Bakkt reported heavy losses and flagged concerns over its ability to continue operations without fresh capital.
As previously reported, the Trump Media & Technology Group was reportedly in talks to acquire Bakkt. However, no agreement was finalized.
The crypto sector is facing challenges. But Bakkt’s move shows its commitment to the industry.
