Bakkt Plans to Sell Up to $1B in Securities for Bitcoin Investment

Highlights:

• Bakkt plans $1B Bitcoin strategy, aiming to join top public crypto-holding firms.
• SEC shelf filing enables flexible fundraising through equity, debt, or bundled securities. 
• Stock rises 3% after filing, despite 46% year-to-date decline in share price.

On Thursday, Digital asset platform Bakkt Holdings filed a shelf registration with the U.S. Securities and Exchange Commission (SEC) to raise up to $1 billion to fund a Bitcoin (BTC) acquisition strategy. This move gives Bakkt the flexibility to raise capital through different types of securities, such as Class A common shares, preferred stock, debt instruments, warrants, or bundled units. It also allows the company to offer them in stages, without needing separate filings for each round. 

Bakkt Shifts Focus to Crypto and New Funding

On June 10, Bakkt unveiled a new investment strategy focused on allocating capital toward Bitcoin and other digital assets, aligning with its broader corporate and treasury goals. However, the SEC filing shows that no crypto assets have been purchased so far. The document also noted that Bakkt may use surplus cash, future fundraising through equity or debt, or other financial resources to make these digital asset purchases. The shelf registration lets Bakkt raise funds quickly when market conditions are favorable. This is especially important due to its history of losses and financial uncertainty. 

Bakkt is making another big change in its business strategy. The company first launched in 2018 to offer Bitcoin futures for big investors, but that didn’t work well. It later moved into crypto custody and token rewards before going public in 2021. Now, it’s focusing fully on building crypto infrastructure and raising money to support it. The company said future crypto buys will depend on market trends, business results, and other key factors.

Bakkt is becoming part of a growing number of public companies making direct crypto investments. Strategy, under Michael Saylor, leads the pack with 592,345 BTC, followed by Marathon Digital with 49,678 BTC and XXI with 37,230 BTC. Riot Platforms and Galaxy Digital round out the top five Bitcoin-holding public companies, with 19,225 BTC and 12,830 BTC in their reserves, respectively. If Bakkt uses the entire $1 billion to buy Bitcoin at current prices, it would secure a spot among the top ten publicly listed Bitcoin holders.

Bakkt Stock Jumps 3% After Announcing Bitcoin Investment Plans

Bakkt, which trades on the New York Stock Exchange, saw its stock climb 3% on Thursday, reaching $13.33, based on data from Google Finance. Despite the daily uptick, the company’s shares have dropped 46% since the beginning of the year.

After updating its investment policy last month, Bakkt co-CEO Akshay Naheta said the goal is to fully focus on crypto infrastructure. He added that the move will help the company slowly add Bitcoin and other digital assets to its treasury. Naheta believes this shows strong faith in the future of digital assets and Bakkt’s plan to grow globally and lead in programmable money. Co-CEO and President Andy Main also shared his view. He said the new policy shows Bakkt’s confidence in digital assets and its aim to explore smart ways to increase shareholder value.