Crypto software company Bakkt Holdings Inc., a subsidiary of Intercontinental Exchange—the parent of the New York Stock Exchange—is seeking to raise up to $1 billion through a shelf offering, according to a recent SEC filing.
In its Form S-3 filed Thursday with the U.S. Securities and Exchange Commission, Bakkt outlined plans to issue a mix of securities, including Class A common stock, preferred stock, debt securities, warrants, or any combination thereof.
The filing comes on the heels of a revised investment policy that now allows Bakkt to allocate capital into Bitcoin and other digital assets as part of its broader treasury and corporate strategy. While the company has not yet made any digital asset purchases, it stated that funds could come from excess cash, future equity or debt offerings, or other capital sources.
The shelf registration enables Bakkt to tap capital markets more flexibly and efficiently when market conditions are favorable—a strategic move for a firm that has faced ongoing financial challenges and “going concern” risks.
Understanding Bakkt’s Going Concern Warning
Founded in 2018, Bakkt acknowledged in its recent filing that it has both a “limited operating history” and “a history of operating losses.”
The filing also included a pointed caution, stating the company has “identified conditions and events that raised substantial doubt about our ability to continue as a going concern.”
As for its potential entry into crypto markets, Bakkt noted that any Bitcoin or digital asset purchases will be influenced by market conditions, investor appetite, overall business performance, and other strategic factors.
Bakkt Struggles with Share Price Decline
Bakkt, listed on the NYSE, saw a modest 3% gain on Thursday, closing at $13.33, according to Google Finance. Despite the uptick, the stock remains down 46% year-to-date.
The sharp decline in share price was exacerbated in March, when Bakkt shares plunged 30% following the announcement that two major clients—Bank of America and Webull—would not be renewing their commercial agreements with the company.
Bakkt bullish on crypto IPOs
Commenting on the recent wave of crypto IPO filings—including those from Circle, eToro, and Gemini—Bakkt stated on X that these moves “are just the latest in a string of developments indicating real momentum is building again in digital assets.”
The firm added that such activity brings “validation, visibility, and maturity to the market.”
