Bakkt Seeks $1 Billion to Establish Bitcoin Reserve

Publicly traded company Bakkt has joined the global trend of forming reserves in the leading cryptocurrency, according to documents filed with the SEC documents.

The management of the firm, established in 2018, plans to raise $1 billion through the sale of stocks, warrants, and debt securities for the subsequent purchase of digital gold.

On June 10, Bakkt announced an update to its investment policy—it now includes investments in bitcoin and other digital assets as part of a “broader corporate and treasury strategy.” According to the documents filed with the Commission, acquisitions have not yet been made.

“This initiative is designed to support Bakkt’s transformation into a purely infrastructure crypto company and will allow us to strategically add bitcoin and other digital assets to the treasury,” said co-head of the company Akshay Nahata at the time.

He noted that the firm is confident in the future of digital assets and views this step as part of a strategy for international growth and strengthening its position in the field of programmable money.

An Attempt to Rise from the Ashes?

During the “ICO fever” and chaotic market growth of 2017–2018, the Bakkt platform was perceived by industry participants either as a step towards maturity and institutionalization or as an attempt by Wall Street to take over bitcoin.

The launch of the “revolutionary platform” was repeatedly postponed. Finally, in the autumn of 2019, trading in physically settled futures based on digital gold commenced, yet trading volumes were negligible compared to the Chicago Mercantile Exchange (CME).

In 2021, Bakkt President Adam White announced his departure. By 2023, the firm had fully focused on B2B solutions, ceasing work on its retail investor application.

In 2024, the company expressed doubt about its ability to continue business and warned the SEC of a potential closure.

After a series of setbacks and a shift in focus, Bakkt’s new initiative appears as an attempt at a “reboot,” driven by a desire to adapt to the industry’s changing landscape.

Earlier, Coinbase analysts highlighted systemic risks associated with the “trend” of bitcoin reserves.