Hassan Maishera
TL;DR
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Bakkt has warned that it might soon go out of business due to cash restrictions.
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The company’s stock price is down by more than 80% since it went public in 2021.
Bakkt Could Close Down Soon
Bakkt, a crypto platform launched by the owner of the New York Stock Exchange, warned on Wednesday that it might soon be going out of business.
The company revealed this in a document filed with the US Securities and Exchange Commission (SEC). Bakkt said,
"We might not be able to continue as a going concern. 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.”
Bakkt was launched in 2018 by Intercontinental Exchange, which owns large derivatives exchanges plus the NYSE. At the time, Bakkt was launched to help Starbucks customers buy coffee with bitcoin (BTC).
The firm launched a digital wallet in 2021 but the company discontinued the wallet in 2023 as it shifted its operational model to business-to-business technology services. The company also went public in 2021.
However, the company hasn’t recorded much success in enabling people to pay for goods and services using Bitcoin. Bakkt’s stock value is down by 84% since the company went public. In 2021 when Bakkt went public, its stock was trading at $40 but has massively declined and traded at $1.45 on Wednesday.
