- Bakkt, launched by NYSE owner in 2018, warns it might not have funds to stay open another year.
- Company pivoted from initial goal of enabling Starbucks Bitcoin payments to crypto custody and trading, but struggles financially.
- Stock price plummeted from over $40 in 2021 to $1.45, seeking $150 million in funding to survive
Bakkt, the crypto platform launched with fanfare in 2018 by the owner of the New York Stock Exchange, has thrown its future into doubt, revealing it may not have enough funds to continue operating for the next year.
“We might not be able to continue as a going concern,” the company declared in a recent filing with the U.S. Securities and Exchange Commission. This highlights their cash flow struggles, prompting them to seek up to $150 million through securities sales to stay afloat.
Bakkt’s initial vision aimed to facilitate Starbucks customers buying coffee with Bitcoin, attracting significant attention. However, this goal never materialized, and the company pivoted to crypto custody and trading services. Despite this shift, financial stability remains elusive.
Founded by Intercontinental Exchange, the owner of the NYSE and other large derivatives exchanges, Bakkt initially boasted future U.S. Senator Kelly Loeffler as its CEO. After launching a digital wallet in 2021, they discontinued it the following year, reflecting shifting strategies.
Juthica, a Bitcoin investor with 16,000 followers, inquired how Bakkt had mishandled matters amidst significant growth in the crypto markets.
“There is significant uncertainty associated with our expansion to new markets and the growth of our revenue base given the rapidly evolving environment associated with crypto assets.”
The broader challenges of integrating Bitcoin itself into mainstream payments haven’t helped Bakkt’s case. Although efforts exist, like the Lightning Network for faster transactions, widespread adoption has yet to take off.
This grim situation is further evident in Bakkt’s plummeting stock price. Having traded above $40 in 2021, its shares closed at a mere $1.45 on Wednesday.
The recently submitted revised Form S-3, upon approval, enables the company to “offer a maximum of $150 million in registered securities in public markets to secure extra capital,” as stated in a post that has since been removed from X.
With its future on the precipice, Bakkt’s ability to secure the necessary funding and navigate the competitive crypto landscape remains uncertain. Whether they can overcome these hurdles and find their footing in the evolving digital asset market is a question only time will answer.