Crypto Firm Bakkt Reports Financial Issues to SEC

Bakkt, in its statement to the SEC, reported that it is at risk of being unable to continue its operations due to financial difficulties: “We may not be able to continue on an ongoing basis.”

Crypto custody service provider Bakkt has disclosed to the U.S. Securities and Exchange Commission (SEC) in a document that it faces liquidity issues, putting the company’s ability to continue operations at risk.

The Company Initially Offered Coffee Services with Bitcoin Payments;

Supported by the New York Stock Exchange owner and established in 2018, Bakkt initially entered the sector to enable Starbucks customers to purchase coffee with Bitcoin. Currently, the company offers cryptocurrency custody services to corporate and individual investors, particularly operating under Bakkt Trust Company LLC, under the supervision of the New York State Department of Financial Services (NYDFS).

Bakkt stated that without securing additional funds through debt financing or equity dilution, its current reserves might be insufficient to sustain operations until 2025. Despite ambitious plans to enter new markets, which the company admits could only lead to significant revenue growth compared to historical levels, this situation could hinder its ability to achieve sustainable profitability and create sufficient cash flow without securing additional capital in the short term.

With the statement “We may not be able to continue on an ongoing basis,” Bakkt’s management indicated that they do not have enough cash or restricted cash reserves to finance their operations over the next 12 months.

Previous Article

BlackRock and Fidelity's Bitcoin ETFs Leaving GBTC Behind in the Liquidity Race

Next Article

SOLANA (SOL) Review and Price Analysis 08.02.2024

Related Posts