"Every company must have a problem, so we have to face it and find a solution quickly."
Launched in 2019, currency firm crypto Bakkt backed by Intercontinental Exchange (ICE) told regulators that they might does not have enough cash to stay in business in the next 12 months.
Bakkt, which once boasted major partners such as Starbucks and Mastercard, is now in a different situation as its firm is seen open Bitcoin (BTC) to institutional investors during bear markets.
Not only that, Bakkt also said they unable to generate sustainable operating profit and sufficient flowi, therefore its future success will depend on its ability to raise capital.
That streak, the firm is currently on looking for the potential to raise additional capital through the issuance of securities registered on the public market to fund their long-term vision.
Once effective, the newly filed amended S-3 form will allow the firm to withdraw up to $150 million in securities registered in the public market to obtain additional capital.
In context, Bakkt is a digital asset platform and a payment application that allows institutions to buy, sell, store and spend crypto including making several strategic partnerships with Starbucks and Amazon Web Services to allow digital asset transactions or services.
Announced in 2021, Bakkt's share price rose to over $40 but its shares traded down 7.6% at $1.34 in trading last Wednesday, so it now looks like it's down 37% since the start of 2024.
