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Key Notes
- Bakkt said that it would use the proceeds from the sale for building its Bitcoin treasury as part of a broader corporate strategy to allocate capital into digital assets.
- The shelf registration enables Bakkt to take advantage of favorable capital market conditions, providing flexibility despite its history of operating losses and financial instability.
- After a challenging year with a 47% decline in stock value and a March selloff following client losses, Bakkt's shares saw a 3% rise to $13.33 on Thursday.
Digital assets company Bakkt Holdings is planning to raise a massive $1 billion through a securities offering, and using the proceeds of this sale for building its Bitcoin BTC $106 748 24h volatility: 0.4% Market cap: $2.12 T Vol. 24h: $23.76 B treasury.
This announcement comes as many corporations rush to add Bitcoin to their balance sheets amid global market uncertainties.
The Intercontinental Exchange subsidiary, which operates the New York Stock Exchange, has filed a Form S-3 with the U.S. Securities and Exchange Commission (SEC), signaling plans to offer common stock and other securities.
The filing outlines the firm’s intention to issue up to $1 billion in a mix of financial instruments that includes Class A common stock, debt securities, preferred stock, warrants, or combinations thereof.
The SEC filing further notes that Bakkt has updated its investment policy earlier this month “to enable us to allocate capital into Bitcoin and other digital assets as part of our broader treasury and corporate strategy”. The filing notes:
“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources.”
The shelf registration will allow Bakkt to tap into the capital markets under favourable conditions. This provides the digital assets firm a strategic advantage given its track record of losses and ongoing concerns about its financial stability.
Will Bitcoin Treasury Plan Help Revive the Bakkt Stock?
The Bitcoin treasury plan will help digital assets firm Bakkt stock to recover after 47% downside so far in 2025. Companies like Metaplanet have experienced significant upside with their Bitcoin accumulation from money raised through 0% bond issuance.
Bakkt’s shares plummeted by 30% in March following the announcement that two major clients, Bank of America and Webull, would not be renewing their commercial agreements.
However, yesterday’s BTC treasury filing led to some upside in the stock price. On Thursday, the NYSE-listed Bakkt’s share price climbed 3%, reaching $13.33.
The company recently stated that the ongoing wave of crypto IPOs, including those from Circle, Gemini, and eToro, “are just the latest in a series of moves indicating real momentum is returning to digital assets. These developments bring validation, visibility, and maturity to the market,” they added.
In its recent filing, Bakkt also acknowledged a “limited operating history and a track record of operating losses.” The company stated that the timing and scale of any cryptocurrency purchases would hinge on market dynamics, capital market conditions, business performance, and strategic priorities.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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