Bakkt files to raise $1B with plans to allocate funds to Bitcoin

Bakkt Holdings Inc. has disclosed plans to raise $1 billion through a mixed securities offering and use the proceeds to fund Bitcoin buys.

According to the crypto software firm’s June 26 filing with the U.S. Securities and Exchange Commission, the offering will include any combination of Class A common stock, preferred stock, debt securities, warrants, or units.

The Form S-3 shelf registration enables Bakkt to issue these securities in one or more tranches over time, depending on market conditions.

Bakkt may allocate proceeds from future equity or debt financings into Bitcoin or other digital assets. While no purchases have been made yet, Bakkt said its updated investment policy now permits such acquisitions as part of its broader treasury strategy.

“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources, subject to the limitation set forth in our Investment Policy,” Bakkt noted in the filing.

The filing also noted that the timing and scale of any crypto asset acquisition will depend on business performance, market conditions, capital availability, and strategic priorities. The firm is exploring various financing options, including convertible notes or bonds, to support these plans.

Founded in 2018, Bakkt offers crypto trading and custody solutions through APIs and embedded platforms and went public in 2021 via a SPAC merger.

The pivot to a Bitcoin treasury strategy aligns Bakkt with a growing trend among corporates and public entities allocating reserves into digital assets. The decision may be an attempt to revitalise investor confidence and strengthen the firm’s long-term positioning in the crypto sector.

Bakkt shares rose 3% on Thursday to $13.33, but the stock remains down 46% year-to-date. The firm has been under pressure since March, when its shares plunged 30% after revealing that Bank of America and Webull, two of its largest clients, would not renew their commercial agreements.

The latest development also comes after a turbulent year, as Bakkt reported heavy losses and flagged concerns over its ability to continue operations without fresh capital.

As previously reported by crypto.news, the Trump Media & Technology Group was reportedly in “advanced talks” to acquire Bakkt was apparently in advanced talks to acquire Bakkt. However, no agreement was finalized, and the status of the negotiations remains unclear.