Bakkt, a US-based cryptocurrency platform and public company, announced in a new document filed with the US Securities and Exchange Commission (SEC) that it plans to raise up to $1 billion in capital. The company's move will be made with the aim of strategically purchasing Bitcoin and other cryptocurrencies.
A new strategy for Bitcoin
According to the "S-3 registration statement" filed with the SEC on June 26, Bakkt will be able to raise up to $1 billion through instruments such as an IPO, debt securities, preferred stocks and warrants. The company can use these funds for general operating expenses or to purchase Bitcoin or other digital assets.
In fact, this strategic change of direction was foreshadowed with the new investment policy announced on June 10. The statement stated that the company would now include digital assets in its treasury. However, according to SEC documents, no Bitcoin purchases have been made yet.
Bakkt's co-CEO Akshay Naheta commented on this change in strategy as follows:
"This initiative supports Bakkt's transformation into a company focused entirely on crypto infrastructure. We are taking a multi-faceted approach that reflects our belief in the future of cryptocurrencies and Bakkt's vision for international growth." Bakkt has been progressing in the BTC space since 2018
Founded in 2018 with the support of Intercontinental Exchange (owner of the NYSE), Bakkt initially targeted institutional investors by offering physically delivered Bitcoin futures. However, this product received limited attention. The company then moved on to other areas such as loyalty points tokenization and crypto custody services. It went public in 2021.
The company's first CEO, Kelly Loeffler, left her position in 2019 and was briefly appointed as a Georgia senator. During this transformation process of Bakkt, there were also recent reports that the company would be acquired by Donald Trump's social media platform Truth Social.
The stock reacts positively
The document submitted to the SEC also includes concerns about the company's financial health. Bakkt stated that it is facing some difficulties due to its limited operating history and inability to generate stable income. It was also stated that a major customer that provides a large portion of the company's revenue will not renew its contract, which could negatively affect its financial structure.
Despite this, the market reacted positively to the announcement in the short term. According to market data, BKKT shares increased by 3.09 percent to $13.3. However, a small decrease (about 0.60 percent) was observed in post-closing transactions.
If Bakkt implements Bitcoin purchases, it will join the bandwagon of publicly traded companies that follow this strategy. Some of these companies have experienced significant increases in their shares. For example, Japan-based Metaplanet's shares gained 7,963 percent after purchasing BTC in April.
In contrast, according to Lookonchain data, only 8 out of 20 companies that announced that they purchased Bitcoin benefited from this strategy on a per-share basis. The stock performance of 12 companies showed a decline. In other words, Bitcoin investments may not always produce positive results in the short term.
