Bakkt Holdings stated in a press launch on Feb. 8 that it’s “assured” it is going to proceed working regardless of expressing issues 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 numerous danger 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 danger components associated to its potential to proceed as a going concern for 12 months after the date of the amended kind. The corporate stated that its concern evaluation can solely embody administration plans which have been carried out or are possible; it should exclude new merchandise and market launches and people with out confirmed income.
Bakkt presents enterprise merchandise, together with a turnkey crypto buying and selling API, custody providers, and crypto reward options. Bakkt discontinued an app aimed toward retail customers in March 2023. Its mother or father 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’d not have the ability to proceed as a going concern.”
Based on 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 at present in search of extra capital however famous that numerous strategies of elevating capital wouldn’t be obtainable or acceptable. One possibility can be to subject securities, however that may dilute its inventory worth.
Bakkt stated that lack of funding might lead it to cut back growth efforts, lower working prices, restrict future growth, or “even terminate operations.” The agency additionally expressed uncertainty across the dealing with of crypto within the occasion of chapter.
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