Bakkt says it is ‘confident’ about continuing operations after disclosing liquidity issues in SEC filing

Bakkt Holdings mentioned in a press delivery on Feb. 8 that it’s miles “confident” this will proceed working despite expressing concerns earlier over its liquidity in a regulatory submitting.

Bakkt wrote that “management remains confident” and intends to proceed serving clients and sharp toward profitability. The alternate added that its submitting with the SEC for the quarter ending September 2023 described a total lot of risk components partly associated to its acquisition of Apex Crypto, which concluded in early 2023.

Bakkt mentioned that its Feb. 7 amendment to that submitting describes risk components associated to its ability to proceed as a going order for 365 days after the date of the amended make. The corporate mentioned that its order diagnosis can simplest encompass management plans that were conducted or are doable; it must exclude novel merchandise and market launches and americans with out proven revenue.

Bakkt supplies alternate merchandise, in conjunction with a turnkey crypto trading API, custody services and products, and crypto reward solutions. Bakkt discontinued an app geared toward retail customers in March 2023. Its guardian company, ICE, terminated Bakkt Bitcoin futures and options contracts in September 2023.

SEC submitting tells a special story

No topic Bakkt’s assurances to the final public, its submission to the SEC explicitly states in mettlesome text:

“We might perchance well also fair no longer be in a order to proceed as a going order.”

In accordance to the submitting, Bakkt mentioned that it’s miles no longer doable that its revenue will generate sufficient revenue and money flows to proceed doing alternate. It also described “expected working losses and money burn for the foreseeable future.”

One other part reads:

” … We now have got obvious that we attain no longer believe that our money and restricted money are sufficient to fund our operations for the 365 days following the date of this [filing].”

The firm mentioned it’s miles on the second in search of further capital but renowned that a total lot of systems of raising capital wouldn’t be on hand or acceptable. One option might perchance well be to concern securities, but that would dilute its stock designate.

Bakkt mentioned that lack of funding might perchance well also fair lead it to diminish growth efforts, gash working costs, restrict future vogue, or “even stop operations.” The firm also expressed uncertainty across the handling of crypto in the tournament of financial peril.