Bakkt pushes for capital increase of up to $1 billion…Set to purchase Bitcoin

Doohyun Hwang

Summary

Bakkt announced that it has applied for a shelf registration to issue securities worth up to $1 billion.
Bakkt revealed plans to acquire virtual assets such as Bitcoin through this securities offering.
The specific issuance terms and use of proceeds will be disclosed in prospectuses prepared at the time of each securities offering.

Virtual asset (cryptocurrency) exchange Bakkt has applied for a shelf registration with the U.S. Securities and Exchange Commission (SEC) on the 26th (local time) to issue securities worth up to $1 billion.

With this shelf registration, Bakkt secured the authority to issue a variety of securities—including Class A common stock, preferred stock, bonds, warrants, and units—in multiple tranches over time. This structure allows for flexible capital raising as needed, without a separate registration each time.

Through these securities offerings, Bakkt is expected to begin acquiring Bitcoin. Back in June, Bakkt announced that it had changed its internal regulations to allow the acquisition of virtual assets, including Bitcoin, through excess cash, external fundraising, or bond issuances. However, at this time, no actual purchase of virtual assets has taken place yet.

Bakkt explained, "We plan to strategically allocate virtual assets according to future market liquidity and capital needs," adding, "Specific issuance terms and use of proceeds will be announced in separate prospectuses at the time of each securities offering."

BTC