Bakkt's Financial Struggle: Crypto Platform Warns of Uncertain Future
Feb 8, 2024
Bakkt, the crypto platform launched in 2018 by the owner of the New York Stock Exchange, has issued a warning that it may not be able to sustain its operations. In a document filed with the U.S. Securities and Exchange Commission, Bakkt expressed concerns about its ability to continue as a going concern due to insufficient cash reserves. To address this issue, the company is seeking to raise up to $150 million through the sale of securities. Initially aimed at facilitating bitcoin payments for Starbucks customers, Bakkt has since shifted its focus to providing crypto custody and trading services after discontinuing its digital wallet in 2021. Despite efforts to promote bitcoin and blockchain-based payments, widespread adoption remains limited, although projects like the Lightning Network aim to improve transaction efficiency on the Bitcoin blockchain.