Summary
Bakkt, the institutional crypto platform owned by Intercontinental Exchange (ICE), has received approval from the US Securities and Exchange Commission to raise up to $150 million in registered securities over the next three years. The move suggests that Bakkt is in need of funds to support its long-term vision. The company acknowledged the uncertainty in the crypto market and its struggle to generate sustainable operating profit and sufficient cash flows. Bakkt’s stock price has plummeted over 97% from its all-time high and faces tough competition in the institutional crypto market. The sales of securities could further dilute its stock prices.
Key Points
1. Bakkt, the institutional crypto platform owned by the Intercontinental Exchange (ICE), has been approved to raise funds to support its long-term vision. This indicates that the company is facing challenges and may not be performing as well as initially expected.
2. Bakkt filed an amended Form S-3 with the US Securities and Exchange Commission, requesting permission to issue up to $150 million in registered securities in the public markets. This permission has now been granted, allowing Bakkt to raise capital over the next three years.
3. Bakkt’s share price has experienced a significant decline, dropping more than 97% from its all-time high of $40 in October 2021. The sales of securities or company stock could further dilute BKKT prices, and the company now faces tough competition in the institutional crypto market.