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Crypto Firm Bakkt Warns It Might Not Be Able to Remain in Business
The company, with backing from the owner of the NYSE, was introduced in 2018 with the initial goal of helping Starbucks customers buy coffee with bitcoin.
- Bakkt, a crypto custody and trading platform, added a "going concern" warning in an SEC filing, saying it might not have enough cash to remain in business.
- The company was introduced in 2018, with the initial goal of helping Starbucks customers buy coffee with bitcoin.
Bakkt, a crypto platform introduced amid great fanfare in 2018 by the owner of the New York Stock Exchange, warned Wednesday that it might not be able to stay in business.
"We might not be able to continue as a going concern," the company said in a document filed with the U.S. Securities and Exchange Commission. "We do not believe that our cash and restricted cash are sufficient to fund our operations for the 12 months following the date of" the filing.
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Bakkt is seeking to sell up to $150 million of securities, according to a Bakkt spokesperson, which could ease this problem.
The company was set up by Intercontinental Exchange, which owns large derivatives exchanges plus the NYSE, with the initial goal of helping Starbucks customers buy coffee with bitcoin BTC$93,769. Future U.S. Senator Kelly Loeffler was its first CEO. It finally introduced a digital wallet in 2021, but that was discontinued last year. Bakkt is now focused on crypto custody and trading services.
Overall efforts to use bitcoin, the asset, and Bitcoin, the blockchain, for payments have seen little success, though the Lightning Network, a layer-2 blockchain where Bitcoin transactions can be offloaded for more-efficient processing, aims to turn that into reality.
Read more: What is Bitcoin's Lightning Network?
Bakkt went public in 2021. Its stock trade closed Wednesday at $1.45, down from more than $40 in 2021.
UPDATE (Feb. 8, 2023, 04:39 UTC): Adds statement from company.
Nick Baker
Nick Baker was CoinDesk's deputy editor-in-chief. He won a Loeb Award for editing CoinDesk's coverage of FTX's Sam Bankman-Fried, including Ian Allison's scoop that caused SBF's empire to collapse. Before joining in 2022, he worked at Bloomberg News for 16 years as a reporter, editor and manager. Previously, he was a reporter at Dow Jones Newswires, wrote for The Wall Street Journal and earned a journalism degree from Ohio University. He owns more than $1,000 of BTC and SOL.
