Bakkt Eyes $1 Billion Raise to Fund Potential Bitcoin Buys

Bakkt Holdings Inc. is making a bold treasury pivot, announcing plans to raise up to $1 billion through a mixed securities offering to fund future Bitcoin acquisitions.

In a filing submitted to the U.S. Securities and Exchange Commission on June 26, the crypto software firm revealed it intends to issue a combination of Class A common stock, preferred stock, debt securities, warrants, or units under a Form S-3 shelf registration. This allows Bakkt to issue the securities in multiple tranches over time, depending on market conditions.

While no Bitcoin purchases have been made yet, Bakkt’s updated investment policy now permits the use of proceeds from equity or debt financings, excess cash, or other capital sources to acquire Bitcoin or other digital assets. The company highlighted that the timing and scale of any acquisition will hinge on its business performance, strategic priorities, available capital, and market trends.

“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources, subject to the limitation set forth in our Investment Policy,”

Bakkt stated in the filing.

Bakkt is exploring various financing avenues, including convertible notes or bonds, to fuel these treasury initiatives. Founded in 2018, Bakkt offers crypto trading and custody services via APIs and embedded platforms. It went public in 2021 through a SPAC merger.

This treasury shift mirrors a broader corporate trend of allocating reserves into digital assets to hedge and diversify holdings. The move could also bolster investor confidence in Bakkt, which has faced a turbulent year. In March, Bakkt shares nosedived by 30% after Bank of America and Webull, two of its major clients, opted not to renew their commercial agreements.

The latest fundraising push comes amid persistent concerns about Bakkt’s financial stability. Earlier this year, the firm flagged doubts over its ability to continue operations without fresh capital injections.

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