Bakkt Shutdown Looms; Cash Crunch Triggers Desperate $150M Fundraise

By Gaurav Kudekar

Published on:

Bakkt

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.

Cash Crunch

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.

Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.

Gaurav Kudekar

I am a multifaceted content creator with expertise in blogging, finance, and cryptocurrency reviews. My creative journey involves weaving captivating stories into blogs, designing aesthetically pleasing and functional websites, and dissecting the nuances of cinema. We are dedicated to sharing our passion and insights with a global audience.

Related Post

Hbar Price: Hbar Smashed New ATH, Will The Rally Continue To $1?

Hbar Price: Hbar Smashed New ATH: Recently, HBAR, the cryptocurrency of Hedera Hash graph, hit a new record high for the year, jumping up by 9.89%. This significant ...

8 Best Cryptocurrencies To Buy Now Before The 2024 Crypto bull Run

8 Best Cryptocurrencies: For the first time in more than two years, the total value of cryptocurrencies worldwide has gone over $2 trillion. This is a big deal ...

Shiba Inu Coin Price Forecast: As Shibarium Skyrockets, Will SHIB Hit $0.0001 Before March?

Shiba Inu Coin Price Forecast: The price of Shiba Inu coin, a trendy meme-based cryptocurrency, has been going up a lot lately. It broke through a certain price ...

In an Arbitrum and Litecoin battle, a new meme coin raised $200k in a matter of days.

Arbitrum and Litecoin battle: Litecoin (LTC) and Arbitrum (ARB) are having a hard time, but a new meme coin called Kangamoon (KANG) is becoming popular. Want to know ...

Leave a Comment