Bakkt cash shortage raises concerns
Bakkt, a cryptocurrency platform backed by the owner of the New York Stock Exchange (NYSE), has issued a warning about its future, which could collapse due to a lack of operating cash in the next 12 months.。
Bakkt, a cryptocurrency platform backed by the owner of the New York Stock Exchange (NYSE), has issued a warning about its future, which could collapse due to a lack of operating cash in the next 12 months.。
Bakkt's future at stake
In a filing with the Securities and Exchange Commission (SEC) yesterday (Wednesday), the company said: "We may not be able to continue as a going concern because the cash and restricted cash are insufficient to fund our operations for the 12 months following the filing date.。"
A Bakkt spokesman reportedly confirmed that the company was seeking to liquidate 1.$500 million in securities to overcome cash shortages。
Bakkt was set up by the Intercontinental Exchange, founded in 2018, and has gradually shifted to offering cryptocurrency trading, primarily derivatives trading, and is currently focusing on cryptocurrency custody services.。It even launched a digital wallet in 2021, but stopped serving last year.。
The US company, which went public in 2021, followed the route of a reverse merger with a short company and is currently trading at 1.$45, which has lost about 85% of its value since listing on the New York Stock Exchange.。
Company says money tight
Now, in its latest filing, the company has raised serious concerns about its future operations.。
"Given the rapidly evolving environment associated with crypto assets, there is significant uncertainty about our expansion into new markets and the growth of our revenue base.。"
"We cannot determine whether it is possible to significantly increase revenue beyond the level achieved in the past, thereby generating sustainable operating profit and sufficient cash flow to continue our business in the short term without raising additional funds."。
The company expects an "operating loss and cash burn" and recurring losses for the foreseeable future.。
"If we are unable to raise sufficient funds through additional debt or equity arrangements, our ability to maintain sufficient liquidity to operate the business effectively will be uncertain, raising doubts about our ability to continue as a going concern.。"
"And if we cannot continue to operate as a viable entity, our shareholders are likely to lose most or all of their investment in us."。"
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