tl;dr
Digital asset firm Bakkt, known for its major partnerships and initial focus on enabling consumer use of digital assets, is facing financial struggles, citing the rapidly evolving crypto industry. The company disclosed that it may not have enough cash to continue operations for the next 12 months, a...
Digital asset firm Bakkt, known for its major partnerships and initial focus on enabling consumer use of digital assets, is facing financial struggles, citing the rapidly evolving crypto industry. The company disclosed that it may not have enough cash to continue operations for the next 12 months, and it is seeking additional financing. Bakkt has recently shifted its strategy and delisted dozens of crypto assets, and its stock price has plunged nearly 90% over the past year. Bakkt told regulators this week that it is running out of money, citing the “rapidly evolving environment” in the crypto industry.
The company, once boasting major partners like Starbucks and Mastercard and tracing its lineage to the same firm that owns the New York Stock Exchange, disclosed in an SEC filing Tuesday that it likely does not have enough cash to continue operations for the next 12 months. Bakkt amended its quarterly report from November to update the risk disclosures following an international expansion. “There is significant uncertainty associated with our expansion to new markets and the growth of our revenue base given the rapidly evolving environment associated with crypto assets,” the company stated. It also mentioned that it cannot conclude it is probable they will be able to increase revenues substantially without raising more money in the future. Bakkt started in 2018 as a consumer-focused crypto platform but has since shifted its strategy, offering crypto trading and custody services to financial institutions and fintech companies. The company explained that its new “business-to-business-to-consumer approach” focuses on powering commerce by embedding crypto solutions into client environments. It has acquired and since delisted dozens of crypto assets amid regulatory scrutiny and has announced an international expansion, citing the uncertainty it introduces. The company seeks to raise additional financing to meet its needs over the next year.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.