Bakkt Holdings Inc., a crypto software company, is seeking to raise $1 billion via various securities offerings. This money could then be used for Bitcoin purchases.
The company is owned by The Intercontinental Exchange (which also operates the New York Stock Exchange). filed On Thursday, the company filed a form S-3 at the US Securities and Exchange Commission, disclosing its intention to issue common stocks and securities.
It said that it would be able to issue Class A Common Stock, Debt Securities, Warrants or any combination thereof up to $1 Billion.
It was stated in the filing that Bakkt The company updated its policy on investment earlier this month “to enable us to allocate capital into Bitcoin and other digital assets as part of our broader treasury and corporate strategy,” It has not yet made a single purchase.
“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources,” Addition of the file.
Bakkt can quickly gain access to capital markets under favorable conditions, especially given its history of losses.
Bakkt going concern issues
Bakkt was founded in 2018 and admitted to having a “limited operating history and a history of operating losses.”
This filing contained an extremely specific warning regarding future operations, in that the company had “identified conditions and events that raised substantial doubt about our ability to continue as a going concern.”
Related: Bakkt names new co-CEO amid re-focus on crypto offerings
According to the firm, timing and size of crypto purchases are dependent on market conditions and factors such as capital markets’ receptivity and business performance.
Bakkt share price woes
Bakkt’s share price rose 3% Thursday, reaching $13.33, according Google Finance. Google Finance.
Bakkt shares tanked 30% The company was forced to announce that Bank of America (its largest client) and Webull (one of its biggest clients), would not be renewing their contracts in March.
Bakkt Bullish on Crypto IPOs
The firm commented Recent slates of crypto IPO filingsCircle, eToro or Gemini are among those who have said they believe in them. “are just the latest in a string of moves that suggest real momentum is building again in digital assets.”
“These developments bring validation, visibility, and maturity to the market,” Additions to the list include:
Magazine: North Korea crypto hackers tap ChatGPT, Malaysia road money siphoned: Asia Express
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
