Bakkt, a leading crypto custody and trading platform, has received a much-needed boost from the US Securities and Exchange Commission (SEC). The regulatory body has approved the company’s Form S-3, allowing them to raise up to $150 million in new capital through securities sales over the next three years.
This development comes as a lifeline for Bakkt, which has been struggling with financial losses despite the overall success of the crypto market. In a press release, the company stated that the approval of their “universal shelf” registration will enable them to raise new capital without seeking fresh SEC approval every time.
The shelf registration also allows Bakkt to provide specific details of any future offerings in a prospectus supplement filed with the SEC. This streamlined process will make it easier for the company to raise funds and improve their financial standing.
Bakkt’s financial struggles were highlighted in their recent statement, where they reported net losses of $2.26 billion since Q4 of 2021. This raised concerns about their “ability to continue,” as stated in their Form 10-Q amendments for Q3 of 2023.
The approval of their shelf registration is a much-needed lifeline for Bakkt, and it could potentially save the company from the brink. The crypto community is eagerly awaiting further updates on the company’s financial status and potential future offerings.
In conclusion, Bakkt’s successful Form S-3 approval is a significant development for the company and the broader crypto market. It will provide Bakkt with the necessary resources to continue its operations and potentially expand its services.
