Bakkt Plans $1 Billion Offering for Bitcoin Purchases

Bakkt Holdings Inc., a crypto software firm and subsidiary of The Intercontinental Exchange, has filed a Form S-3 with the US Securities and Exchange Commission, announcing plans to raise up to $1 billion through various securities offerings. The proceeds from this offering could potentially be used to fund Bitcoin purchases, as the company has updated its investment policy to include the allocation of capital into Bitcoin and other digital assets.

The filing reveals that Bakkt could issue up to $1 billion in a combination of Class A common stock, preferred stock, debt securities, warrants, or a mix of these assets. The company has not yet made its first purchase of Bitcoin but has stated that it may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources.

This shelf registration allows Bakkt to quickly access capital markets when conditions are favorable, which is particularly important given the company's history of losses and going concern issues. Bakkt, founded in 2018, has admitted to having a limited operating history and a history of operating losses. The filing also warns of conditions and events that raise substantial doubt about the company's ability to continue as a going concern.

The timing and magnitude of any crypto purchases will depend on market conditions, capital market receptivity, business performance, and other strategic considerations. Bakkt has expressed optimism about the recent slate of crypto IPO filings, viewing them as a sign of growing momentum in the digital asset market. The company believes these developments bring validation, visibility, and maturity to the market.