Bakkt Holdings stated in a press launch on February 8 that it was “assured” to proceed working regardless of earlier expressing considerations about its liquidity in regulatory filings.
Bakkt wrote that “administration stays assured” and intends to proceed serving clients and reaching profitability. The change added that its SEC filings for the quarter ended September 2023 described numerous threat elements associated to its acquisition of Apex Crypto, which accomplished in early 2023.
Bakkt stated its February 7 revision to the doc described threat elements associated to its skill to proceed as a going concern for 12 months after the date of the revised type. The corporate stated its focus evaluation can solely embody administration plans which have been carried out or could also be carried out; it should exclude new product and market launches and people with out confirmed income.
Bakkt presents business merchandise together with turnkey cryptocurrency buying and selling APIs, custody companies, and cryptocurrency rewards options. Bakkt discontinued an app for retail customers in March 2023. Its mum or dad firm ICE terminated Bakkt Bitcoin futures and choices contracts in September 2023.
SEC filings inform a unique story
Regardless of Bakkt’s assurances to the general public, its SEC submitting clearly states in daring textual content:
“We could not proceed as a going concern.”
Bakkt stated its income is unlikely to generate sufficient revenue and money circulation to proceed working, in line with the submitting. It additionally described “anticipated working losses and money burn for the foreseeable future.”
One other half reads as follows:
“…we’ve got decided that we imagine our money and restricted money will probably be inadequate to fund our operations for the 12 months following this announcement. [filing]”.
The corporate stated it’s presently in search of further funding, however famous that numerous strategies of elevating capital will not be obtainable or acceptable. One choice is to problem securities, however this could dilute the worth of its shares.
Bakkt acknowledged {that a} lack of funds could trigger it to cut back enlargement efforts, lower working prices, restrict future growth, and even “terminate operations.” The corporate additionally expressed uncertainty in regards to the therapy of cryptocurrencies within the occasion of chapter.
Bakkt stated it was “assured” in persevering with operations after the liquidity points had been disclosed in an SEC submitting. This submit first appeared on CryptoSlate.
