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Bakkt, once touted as Bitcoin’s ‘savior,’ is running low on cash


Crypto company Bakkt, backed by the Intercontinental Exchange (ICE) and launched in 2019 to a great deal of fanfare — has just warned it may not have enough cash to stay in business over the next 12 months.

On Feb. 7, Bakkt filed an amendment to its quarterly report with the Securities and Exchange Commission, with one section on risk factors containing a warning that it may “not be able to continue as a going concern.”

The company was founded in 2018 amid a lot of hype by Intercontinental Exchange, which owns the NYSE. At the time, Bakkt was seen as opening Bitcoin’s doors to institutional investors amid a deepening bear market.

Bakkt, however, says it now no longer believes its cash and restricted cash are sufficient to fund its operations over the next 12 months.

“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.”

It also warns it has been unable to generate sustainable operating profit and sufficient cash flows from its — and that its future success will depend on its ability to raise capital. 

We “cannot conclude it is probable we will be able to increase revenues substantially beyond levels that we have attained in the past in order to generate sustainable operating profit and sufficient cash flows to continue doing business without raising additional capital in the near future,” it said. 

Bakkt says it’s now looking to raise additional capital by issuing its registered securities in the public markets to “fund our long-term vision.”

A newly filed amended Form S-3, once effective, will allow the firm to “issue up to $150 million in registered securities in the public markets to raise additional capital,” it said in a now-deleted post on X.

Screenshot of now deleted X post from Bakkt. Source: X

Related: Bakkt shifts focus to custody services, adds support for DOGE, SHIB, other coins

Bakkt is a digital asset platform and payments app that enables institutions to buy, sell, store, and spend crypto assets. It has made several strategic partnerships including Starbucks and AWS to enable digital asset transactions and services. 

Bakkt went public in 2021 when share prices spiked to over $40. However, its stock traded down 7.6% in after-hours trading on Wednesday, falling to $1.34, which is now down 37% since the beginning of this year.