Bakkt Holdings stated in a press launch on Feb. 8 that it’s “assured” it’ll proceed working regardless of expressing considerations earlier over its liquidity in a regulatory submitting.
Bakkt wrote that “administration stays assured” and intends to proceed serving purchasers and shifting towards profitability. The alternate added that its submitting with the SEC for the quarter ending September 2023 described numerous danger components partially associated to its acquisition of Apex Crypto, which concluded in early 2023.
Bakkt stated that its Feb. 7 modification to that submitting describes danger components associated to its potential to proceed as a going concern for 12 months after the date of the amended kind. The corporate stated that its concern evaluation can solely embody administration plans which were applied or are possible; it should exclude new merchandise and market launches and people with out confirmed income.
Bakkt presents enterprise merchandise, together with a turnkey crypto buying and selling API, custody providers, and crypto reward options. Bakkt discontinued an app geared toward retail customers in March 2023. Its father or mother firm, ICE, terminated Bakkt Bitcoin futures and choices contracts in September 2023.
SEC submitting tells a distinct story
Regardless of Bakkt’s assurances to the general public, its submission to the SEC explicitly states in daring textual content:
“We would not have the ability to proceed as a going concern.”
In response to the submitting, Bakkt stated that it’s not possible that its income will generate enough revenue and money flows to proceed doing enterprise. It additionally described “anticipated working losses and money burn for the foreseeable future.”
One other part reads:
” … We’ve got decided that we don’t consider that our money and restricted money are enough to fund our operations for the 12 months following the date of this [filing].”
The agency stated it’s at the moment searching for further capital however famous that numerous strategies of elevating capital wouldn’t be out there or acceptable. One possibility could be to challenge securities, however that might dilute its inventory worth.
Bakkt stated that lack of funding might lead it to scale back growth efforts, reduce working prices, restrict future improvement, or “even terminate operations.” The agency additionally expressed uncertainty across the dealing with of crypto within the occasion of chapter.
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