Bakkt Holdings stated in a press launch on Feb. 8 that it’s “assured” it is going to proceed working regardless of expressing considerations earlier over its liquidity in a regulatory submitting.
Bakkt wrote that “administration stays assured” and intends to proceed serving purchasers and transferring towards profitability. The trade added that its submitting with the SEC for the quarter ending September 2023 described varied threat components partially associated to its acquisition of Apex Crypto, which concluded in early 2023.
Bakkt stated that its Feb. 7 modification to that submitting describes threat components associated to its skill to proceed as a going concern for 12 months after the date of the amended type. The corporate stated that its concern evaluation can solely embrace administration plans which were carried out or are possible; it should exclude new merchandise and market launches and people with out confirmed income.
Bakkt provides enterprise merchandise, together with a turnkey crypto buying and selling API, custody companies, and crypto reward options. Bakkt discontinued an app geared toward retail customers in March 2023. Its mum or dad firm, ICE, terminated Bakkt Bitcoin futures and choices contracts in September 2023.
SEC submitting tells a distinct story
Regardless of Bakkt’s assurances to the general public, its submission to the SEC explicitly states in daring textual content:
“We would not be capable of proceed as a going concern.”
In accordance with the submitting, Bakkt stated that it isn’t possible that its income will generate adequate revenue and money flows to proceed doing enterprise. It additionally described “anticipated working losses and money burn for the foreseeable future.”
One other part reads:
” … Now we have decided that we don’t imagine that our money and restricted money are adequate to fund our operations for the 12 months following the date of this [filing].”
The agency stated it’s presently looking for extra capital however famous that varied strategies of elevating capital wouldn’t be accessible or acceptable. One choice could be to problem securities, however that may dilute its inventory worth.
Bakkt stated that lack of funding might lead it to cut back enlargement efforts, lower working prices, restrict future improvement, or “even terminate operations.” The agency additionally expressed uncertainty across the dealing with of crypto within the occasion of chapter.
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