Bakkt, once hailed as the “saviour of Bitcoin,” is now sounding the alarm about its future. The crypto platform has raised concerns over financial constraints and regulatory challenges in its recent filing with the U.S. Securities and Exchange Commission (SEC).
In the submitted Form 10-Q/A on Feb 7, Bakkt openly expresses doubts about its ability to continue operating. The company states, “We might not be able to continue,” highlighting the seriousness of its challenges.
Well, what now?
Launched in 2018 with high expectations under Intercontinental Exchange (ICE), Bakkt initially aimed to streamline Bitcoin transactions, even for everyday consumers like Starbucks customers. However, a shift in focus to business-to-business (B2B) services, such as crypto trading and custody solutions, brought challenges.
Despite this strategic move, Bakkt’s stock performance has declined significantly since its 2021 public listing.
Also Read: Top Reasons Why Bitcoin and Major Altcoins Are Surging Today
The SEC filing serves as a warning to investors, stating Bakkt’s uncertainty in covering expenses for the next 12 months with its existing cash and restricted cash. The company acknowledges this too.
“There is significant uncertainty associated with our expansion to new markets and the growth of our revenue base given the rapidly evolving environment associated with crypto assets.”
To address its challenges, Bakkt aims to raise $150 million through the issuance of registered securities in public markets, as outlined in the amended Form. The funds are intended for working capital and general corporate purposes, representing a strategic move to secure its financial footing.
Bakkt’s current situation highlights the difficulties posed by the rapidly changing regulatory environment and the evolving dynamics of the crypto market. As the company strives to secure its future, investors are bracing for the uncertainties that lie ahead for them.
Also Read: U.S Lags Behind in Crypto Regulations Race: Yellen, Experts Clash on Industry’s Future
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