- Intercontinental Exchange, owner of the New York Stock Exchange, created the firm.
- Bakkt says it doesn’t think its cash will be enough to cover its operations for next 12 months.
Launched with backing from the Intercontinental Exchange (ICE), crypto firm Bakkt has now issued a warning that it may not have sufficient funds to be operational for the next twelve months. Bakkt cautioned that it could “not be able to continue as a going concern” in a section on risk factors in an amended quarterly report it submitted to the U.S SEC on February 7.
Bakkt facilitates the purchase, sale, storage, and spending of cryptocurrency for institutions via its platform and payment app. For the purpose of facilitating the trade and provision of digital assets, it has formed a number of important alliances, among them with Starbucks and Amazon Web Services.
Intercontinental Exchange, owner of the New York Stock Exchange, created the firm in 2018 with much fanfare. While the market was in a tailspin, Bakkt was perceived as allowing institutional investors to buy Bitcoin.
Restricted Funds
The Bitcoin investor “juthica” questioned Bakkt’s gaffe-making in light of the meteoric rise of the cryptocurrency market to her 16,000 X followers. But Bakkt says it doesn’t think its cash and restricted funds will be enough to cover its operations for the next 12 months.
The capacity to obtain finance will determine its future viability, since it has been unable to create sustained operational profit and significant cash flows.
To “fund our long-term vision,” Bakkt has announced that it is considering the issuance of registered securities to the public as a means of raising more cash. A post on twitter that was later deleted said that the firm might raise more money by issuing registered securities in the public markets up to $150 million after filing an amended Form S-3.
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