Bakkt Bitcoin Strategy | Filing of $1B Shelf Registration

Digital asset platform Bakkt Holdings Inc. has filed a shelf registration with the U.S. Securities and Exchange Commission (SEC) to raise up to $1 billion.

The company says the funds could be used to support a new bitcoin and digital asset investment strategy, a big change for the company.

Bakkt, which is publicly traded and backed by Intercontinental Exchange (ICE)—the parent company of the New York Stock Exchange—said it may sell a mix of common stock, preferred shares, debt instruments and warrants.

The money raised could be used for general corporate purposes or to buy bitcoin for its corporate treasury.

“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources,” the company said in its SEC filing.

The shelf registration, filed June 26, allows Bakkt to offer these securities at any time, as needed. This gives the company the flexibility to raise funds quickly without having to file new paperwork each time it wants to sell securities.

This follows a big decision by the company’s Board of Directors on June 10 when it approved an updated investment policy. The new policy allows the company to include bitcoin and other digital assets as part of its broader treasury and corporate strategy.

Although Bakkt has not yet purchased any bitcoin, the company says it’s preparing for the right moment.

The company said when and how much digital assets it buys will be based on market conditions, how the capital markets respond, the company’s financial performance, and other strategic priorities.

Founded in 2018, Bakkt initially offered physically-settled bitcoin futures. Over the years, it also tried tokenized loyalty rewards and digital asset custody services, but those efforts have not gained much traction.

Now the company is positioning itself as a “pure-play crypto infrastructure company” with international expansion and digital treasury management in its sights.

“This initiative is intended to support Bakkt’s transformation into a pure-play crypto infrastructure company,” said Akshay Naheta, Co-CEO of Bakkt.

“We believe this multi-pronged approach reflects our conviction in the future of digital assets and our vision for Bakkt’s expansion internationally and as a leader in the world of programmable money.”

The company’s leadership also mentioned emerging global opportunities, particularly in Asia where countries like Singapore and Hong Kong have more regulatory clarity and liquidity in the digital asset space.

“Bakkt’s jurisdiction-flexible strategy is well-positioned to succeed in Asia,” said Charmaine Tam of Hex Trust. He noted markets like Hong Kong and Singapore have clear regulations, deep liquidity and mature financial systems, perfect for the firm’s institutional digital asset play.

Despite its big plans, Bakkt is still struggling financially. The company admitted in the filing that it has a “limited operating history” and a “history of operating losses.”

It also lost some big clients recently, including Bank of America and Webull, who declined to renew their contracts.

This has raised questions about the company’s long-term viability.