Bakkt is on the verge of bankruptcy
Launched in 2018, the Bakkt crypto platform is on the verge of bankruptcy. According to representatives, the money is only enough for a year. This is stated in a document filed by the company with the U.S. Securities and Exchange Commission (SEC).
On February 7, Bakkt filed amendments to the latest quarterly report with the SEC. In the section on risk factors, the site stated that it would potentially not be able to continue its activities.
"We may not be able to continue our activities. We do not think that our funds and funds limited in use are sufficient to finance our activities for 12 months after the application date," the statement said.
Now the representatives are considering raising additional capital. To do this, they can sell securities worth $150 million. The cryptoplatform clarified that it will retain a wide freedom of action in relation to the proceeds. So far, they plan to spend them on replenishing working capital and other general corporate purposes.
Bakkt appeared in 2018. It was launched by the Intercontinental Exchange (ICE), which owns the New York Stock Exchange. Initially, the main purpose of the site was to help the Starbucks coffee chain. Through collaboration, Bakkt allowed customers to pay for drinks with Bitcoin (BTC).
In 2021, Bakkt conducted an initial public offering (IPO). At the moment, the company's share price exceeded the $40 mark. According to TradingView, they are currently trading at $1.45.
