"Every company must have a problem, so we have to face it and find a solution quickly."
Launched in 2019, Intercontinental Exchange (ICE)-backed cryptocurrency firm Bakkt told regulators it may not have enough cash to stay in business in the next 12 months.
Bakkt, which once boasted major partners like Starbucks and Mastercard, is now in a different situation after its firm was seen opening up Bitcoin (BTC) to institutional investors during a bear market.
Not only that, Bakkt also said that they are unable to generate sustainable operating profit and sufficient flow, therefore its future success will depend on its ability to raise capital.
Following that, the firm is currently looking for the potential to raise additional capital through the issuance of registered securities on the public market to finance their long-term vision.
Once effective, the newly filed amended form S-3 will allow the firm to issue up to $150 million in securities registered on the public market to raise additional capital.
In context, Bakkt is a digital asset platform and payment application that allows institutions to buy, sell, store and spend crypto including several strategic partnerships with Starbucks and Amazon Web Services to allow digital asset transactions or services.
Announced in 2021, Bakkt's share price rose to over $40 but its shares traded down 7.6% at $1.34 in trading last Wednesday, so it now looks like it's down 37% since the start of 2024.
