Bakkt Shutdown Looms: Bakkt, which was once seen as a big help for Bitcoin, is now worried about what lies ahead. The company, which deals with cryptocurrencies, has raised worries about running low on money and facing rules from the government in a recent report to the U.S. Securities and Exchange Commission (SEC).
In the revised Form 10-Q/A filed on Feb 7, Bakkt admits it’s unsure if it can keep going. The company says, “We might not be able to continue,” showing how serious its problems are.
What Went Wrong?
Started in 2018 by Intercontinental Exchange (ICE), Bakkt had big hopes. It wanted to make Bitcoin transactions easier, even for regular people like those who go to Starbucks. But later on, it changed its focus to helping businesses trade and store cryptocurrencies, which was tough.
Even though it made this change, Bakkt’s stock hasn’t been doing well since it went public in 2021.
The SEC filing warns investors that Bakkt might not have enough money to cover its expenses for the next year with the cash it has right now. Bakkt itself also admits this.
Is stability still a possibility?
To solve its problems, Bakkt plans to get $150 million by selling securities in public markets. This money will be used for day-to-day expenses and other company needs, helping Bakkt stabilize its finances.
Bakkt is having a hard time because the rules for cryptocurrencies keep changing quickly and the market is always changing too. The company is trying hard to make sure it can keep going, but investors are worried about what might happen next.
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