Bakkt Holdings files $1B shelf offering that could fuel Bitcoin buys

Crypto software firm Bakkt Holdings Inc. is looking to raise up to $1 billion through various types of securities offerings, which could be used to fund Bitcoin purchases.

The company, a subsidiary of The Intercontinental Exchange, which owns the New York Stock Exchange, filed a Form S-3 with the US Securities and Exchange Commission on Thursday, revealing its intentions to offer common stock and securities.

The firm said it could issue up to $1 billion of any combination of Class A common stock, preferred stock, debt securities, warrants, or combinations of these assets. 

The filing stated that Bakkt updated its investment policy earlier this month “to enable us to allocate capital into Bitcoin and other digital assets as part of our broader treasury and corporate strategy,” but it has yet to make its first purchase. 

“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources,” the filing added. 

The so-called shelf registration allows Bakkt to quickly access capital markets when conditions are favorable, which is particularly important given their history of losses and going concern issues.

Bakkt’s going concern issues 

Bakkt, founded in 2018, admitted in the filing that it had a “limited operating history and a history of operating losses.” 

The filing also contained a very specific warning about future operations in that it had “identified conditions and events that raised substantial doubt about our ability to continue as a going concern.”

Related: Bakkt names new co-CEO amid re-focus on crypto offerings

The firm confirmed that the timing and magnitude of any crypto purchases will depend on market conditions, capital market receptivity, business performance, and other strategic considerations.

Bakkt share price woes 

The NYSE-listed Bakkt saw its share price rise 3% on Thursday to reach $13.33, according to Google Finance. However, the stock is down 46% since the start of the year. 

Bakkt shares tanked 30% in March after the company revealed that two of its largest clients, Bank of America and Webull, were not renewing their commercial agreements.

Bakkt bullish on crypto IPOs 

The firm commented on X on the recent slate of crypto IPO filings, such as those from Circle, eToro and Gemini, saying they “are just the latest in a string of moves that suggest real momentum is building again in digital assets.”

“These developments bring validation, visibility, and maturity to the market,” they added. 

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