Bakkt gets approval for $150M securities sale

• Bakkt announced that its Form S-3 for a shelf registration is now effective after SEC approval.
• The crypto firm can raise $150 million from securitities sales over three years.

In latest crypto news, Bakkt just got a lifeline that could save it from the brink – approval from the US Securities and Exchange Commission (SEC) for its shelf registration application.

Bakkt seeks $150 million in securities sale

The cash-strapped crypto firm announced late Wednesday that the SEC approved the crypto custody and trading platform’s “universal shelf” registration as indicated in a recently filed Form S-3. The regulatory nod allows Bakkt to raise new capital via securities sale offers over the next three years.

Specifically, the shelf registration means the crypto company can raise up to $150 million in new capital without the need to seek fresh SEC approval every time. This can be in one or more offerings as long as the registration is effective, the company noted in a press release.

“If Bakkt decides to raise capital in a future offering using such a registration statement, Bakkt will describe the specific details of that future offering in a prospectus supplement that is filed with the SEC,” it added.

Bakkt’s lifeline comes after the company’s recent statement highlighted its financial status. While Bitcoin and the broader crypto market recorded impressive gains in 2023, the custody provider returned millions of dollars’ in losses.

The publicly-listed company, which has recorded net losses of $2.26 billion since Q4, 2021, noted concerns over its “ability to continue” in a statement on February 8, 2024. The statement related to Bakkt’s amendments to its Form 10-Q for Q3, 2023.