Bakkt, Once In Limelight For Bitcoin Deal With Starbucks, Faces An Existential Crisis: 'Might Not Be Able To Continue…'

Bakkt, a digital asset company in a filing with the Securities and Exchange Commission (SEC) said that its liquidity may be insufficient to sustain operations over the next year. The firm said this is due to a “rapidly evolving environment” across the cryptocurrency industry.

What Happened: Bakkt, which had links with companies like Starbucks and Mastercard, and a lineage connected to the proprietor of the New York Stock Exchange, stated its concerns about the current fiscal path in an SEC filing.

“We might not be able to continue as a going concern,” the company said in a document filed with the SEC. “We do not believe that our cash and restricted cash are sufficient to fund our operations for the 12 months following the date of” the filing.

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Why It Matters: Originating in 2018 under the wing of Intercontinental Exchange, the parent company of the New York Stock Exchange, Bakkt initially made headway by creating a consumer-centric platform for utilizing digital assets in partnership with major brands. It went public in 2021 through a SPAC merger, entering the stock market with a valuation of $2.1 billion and publicizing a digital wallet integrating various digital assets.

However, Bakkt later readjusted its strategy to provide cryptocurrency trading and custody services for financial and tech firms, concentrating on a “business-to-business-to-consumer approach.” 

To navigate the upcoming year, Bakkt has made it clear that attracting additional investment will be critical. Following the amendment of its SEC report, Bakkt's shares experienced another dip, descending from the day's peak of $1.47 to $1.29.

Photo Courtesy: Ascannio On Shutterstock.com

Price Action: Bitcoin BTC/USD was trading at $44,515, up 3.91% in the last 24 hours, according to Benzinga Pro.

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