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Crypto firm Bakkt warns it may not be able to stay in business
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Bakkt, a cryptocurrency custody and trading platform, added a “going concern” warning in an SEC filing, saying it may not have enough liquidity to remain in business .
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The company was founded in 2018, with the initial goal of helping Starbucks customers buy coffee with Bitcoin.
Bakkt, a crypto platform introduced in the middle big fanfare in 2018 by the owner of the New York Stock Exchange, warned Wednesday that it may not be able to stay in business.
“We may not be able to continue our business,” the company said in a statement. document filed with the United States Securities and Exchange Commission. “We do not believe that our liquidity and restricted cash resources are sufficient to fund our operations for 12 months following the date” of the filing.
Bakkt is seeking to sell up to $150 million of securities, according to a Bakkt spokesperson, which could alleviate this problem.
The company was created by Intercontinental Exchange, which owns major derivatives exchanges as well as the NYSE, with the initial goal of helping Starbucks customers. buy coffee with Bitcoin {{BTC}}. Future U.S. Senator Kelly Loeffler was its first CEO. He finally introduced a digital wallet in 2021, but it was stopped last year. Bakkt is now focusing on cryptocurrency custody and trading services.
Overall efforts to use Bitcoin, the asset, and Bitcoin, the blockchain, for payments have seen little success, although the Lightning Networka layer 2 blockchain where Bitcoin transactions can be offloaded for more efficient processing, aims to make this a reality.
Learn more: What is the Bitcoin Lightning Network?
Bakkt went public in 2021. Its stock closed Wednesday at $1.45, up from more than $40 in 2021.
UPDATE (February 8, 2023, 04:39 UTC): Adds a company statement.