Bakkt Plans $1 Billion Raise to Fuel 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. This move could potentially fuel Bitcoin purchases, as the company has updated its investment policy to allocate capital into Bitcoin and other digital assets. The offerings may include Class A common stock, preferred stock, debt securities, warrants, or combinations of these assets.

The shelf registration allows Bakkt to swiftly access capital markets when conditions are favorable, a strategic move given the company's history of operating losses and going concern issues. Bakkt, founded in 2018, has acknowledged its limited operating history and past financial struggles. The filing also highlights specific 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 be contingent on market conditions, capital market receptivity, business performance, and other strategic considerations. Bakkt has not yet made its first purchase of Bitcoin or other digital assets but has outlined its intentions to do so using excess cash, proceeds from future equity or debt financings, or other capital sources.

Despite recent share price fluctuations, Bakkt remains optimistic about the crypto market. The company commented on the recent wave of crypto IPO filings, noting that these developments bring validation, visibility, and maturity to the market. This bullish stance on crypto IPOs suggests that Bakkt is positioning itself to capitalize on the growing momentum in digital assets.