Bakkt Warns SEC of Potential Closure

Bakkt has expressed doubts about its ability to continue operations into 2025. This concern was highlighted in the risk section of the institutional crypto platform’s quarterly report to the SEC.

“In our estimation, cash and cash equivalents will be insufficient to fund our operations over the next 12 months,” the document states.

The organisation attributed this conclusion to significant uncertainty related to its expansion into new markets and revenue growth amidst a rapidly changing regulatory environment.

Management expressed doubts about the potential to increase revenue and achieve operational profit and cash flow levels sufficient to continue business without additional capital.

Without new financing, the company would be unable to continue operations, and shareholders could lose most or all of their investments, it added.

In a conversation with CoinDesk, a platform representative explained that Bakkt is seeking demand for shares worth $150 million.

“If we are unable to secure financing when needed, or on acceptable terms, we may be required to scale back current product expansion programs, reduce operating expenses, abandon future developments […] or even cease operations,” the report states.

Intercontinental Exchange, the owner of the NYSE, introduced Bakkt in 2018. The platform offered trading in options as well as cash-settled and physically delivered Bitcoin futures.

In October 2021, Bakkt became a public company following a merger with SPAC VPC Impact Acquisition Holdings. Its shares are traded on the New York Stock Exchange under the ticker BKKT.

Later that year, the organisation’s president, Adam White, left without providing reasons.

In November 2022, Bakkt signed a definitive agreement to acquire Apex Crypto, the crypto division of Apex Fintech Solutions.

Previously, Apex had partnered with Revolut as part of the latter’s initiative to expand supported digital assets for users in the U.S.

In March 2023, Bakkt announced the discontinuation of its retail investor app, focusing instead on providing crypto services and loyalty solutions to companies within a B2B2C model through SaaS and API solutions.

In August 2023, the institutional platform’s CEO, Gavin Michael, reported high rates of customer inflow.