Bakkt Faces Financial Challenges in Cryptocurrency Industry
Bakkt, the cryptocurrency platform backed by the Intercontinental Exchange (ICE), has expressed concern about its financial sustainability over the next year due to the rapidly changing nature of the crypto space. In a filing with the United States Securities and Exchange Commission, Bakkt admitted that it may not have enough funds to continue operating. The company issued a warning in its quarterly report, stating that its cash reserves were insufficient to support its operations. It also mentioned potential market uncertainties, compliance failures, and disruptions that could impact its ability to develop new services and maintain internal controls.
Seeking Capital to Support Long-Term Goals
Bakkt is now looking to raise capital by issuing registered securities. The company plans to raise $150 million through the sale of securities in the public markets. The specific use of the proceeds has not been disclosed yet, but Bakkt indicated that it intends to utilize the funds for general corporate purposes and working capital. Additionally, Bakkt has announced its expansion into international and domestic markets, aiming to extend its crypto capabilities and establish partnerships in various markets, including Mexico, Argentina, and Brazil. Strategic collaborations with AWS and Starbucks are also in place to facilitate digital asset transactions and services.
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