Bakkt Holdings mentioned in a press launch on Feb. 8 that it’s “assured” it’s going to proceed working regardless of expressing considerations earlier over its liquidity in a regulatory submitting.
Bakkt wrote that “administration stays assured” and intends to proceed serving purchasers and transferring towards profitability. The trade added that its submitting with the SEC for the quarter ending September 2023 described varied danger components partially associated to its acquisition of Apex Crypto, which concluded in early 2023.
Bakkt mentioned that its Feb. 7 modification to that submitting describes danger components associated to its capacity to proceed as a going concern for 12 months after the date of the amended kind. The corporate mentioned that its concern evaluation can solely embrace administration plans which have been carried out or are possible; it should exclude new merchandise and market launches and people with out confirmed income.
Bakkt presents enterprise merchandise, together with a turnkey crypto buying and selling API, custody companies, and crypto reward options. Bakkt discontinued an app aimed toward retail customers in March 2023. Its dad or mum firm, ICE, terminated Bakkt Bitcoin futures and choices contracts in September 2023.
SEC submitting tells a distinct story
Regardless of Bakkt’s assurances to the general public, its submission to the SEC explicitly states in daring textual content:
“We would not be capable of proceed as a going concern.”
In accordance with the submitting, Bakkt mentioned that it isn’t possible that its income will generate enough revenue and money flows to proceed doing enterprise. It additionally described “anticipated working losses and money burn for the foreseeable future.”
One other part reads:
” … Now we have decided that we don’t imagine that our money and restricted money are enough to fund our operations for the 12 months following the date of this [filing].”
The agency mentioned it’s presently in search of extra capital however famous that varied strategies of elevating capital wouldn’t be accessible or acceptable. One possibility can be to difficulty securities, however that will dilute its inventory worth.
Bakkt mentioned that lack of funding might lead it to cut back growth efforts, reduce working prices, restrict future improvement, or “even terminate operations.” The agency additionally expressed uncertainty across the dealing with of crypto within the occasion of chapter.
The submit Bakkt says it’s ‘assured’ about persevering with operations after disclosing liquidity points in SEC submitting appeared first on CryptoSlate.
