According to Cointelegraph: Cryptocurrency firm Bakkt, known for its trading platform and custody services, has received regulatory approval to raise up-to $150 million through the sale of its securities. This development comes a week after the company expressed concerns over its continuing financial capacity.
On February 14, Bakkt announced it had secured permission for a "shelf registration" — a mechanism allowing a company to register a new issue of securities with the U.S. Securities and Exchange Commission (SEC), which can then be sold gradually over time without needing separate approvals for each transaction.
The approval will enable Bakkt to raise a combined $150 million in capital through one or more offerings over the next three years. Bakkt sees significant benefits in this flexible approach when raising future capital.
On February 7, Bakkt revealed it was running low on cash, raising concerns about its ability to continue operating. It suggested that it could potentially raise additional capital by issuing its registered securities in public markets to fund its long-term vision.
The company has suffered eight consecutive quarters of net losses since becoming public in October 2021. Despite the cryptocurrency market rebounding from a challenging 2022, Bakkt reported losses of $44.9 million, $50.5 million, and $51.7 million throughout the first three quarters of 2023.
However, the losses shrank in 2023 compared to the significant losses of $1.59 billion and $323.9 million in the third and fourth quarters of 2022. The firm has accrued a total of $2.26 billion in net losses since the fourth quarter of 2021.
Before this news, Bakkt's share price rose by 7.8% to $1.03. Despite this increase, it's still down more than 51% in 2024.