Bakkt Holdings mentioned in a press launch on Feb. 8 that it’s “assured” it can proceed working regardless of expressing issues earlier over its liquidity in a regulatory submitting.
Bakkt wrote that “administration stays assured” and intends to proceed serving purchasers and shifting towards profitability. The alternate added that its submitting with the SEC for the quarter ending September 2023 described varied threat elements partly associated to its acquisition of Apex Crypto, which concluded in early 2023.
Bakkt mentioned that its Feb. 7 modification to that submitting describes threat elements associated to its capability to proceed as a going concern for 12 months after the date of the amended type. The corporate mentioned that its concern evaluation can solely embody administration plans which were applied or are possible; it should exclude new merchandise and market launches and people with out confirmed income.
Bakkt affords 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 mum or dad 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 to proceed as a going concern.”
Based on the submitting, Bakkt mentioned that it isn’t possible that its income will generate adequate 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:
” … We’ve got decided that we don’t imagine that our money and restricted money are adequate to fund our operations for the 12 months following the date of this [filing].”
The agency mentioned it’s at present searching for extra capital however famous that varied strategies of elevating capital wouldn’t be obtainable or acceptable. One choice can be to problem securities, however that will dilute its inventory worth.
Bakkt mentioned that lack of funding might lead it to scale 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.