Key Takeaways
- Bakkt shares fell over 40% following a $75 million public offering announcement.
- Funds raised are intended for bitcoin and digital asset purchases and general purposes.
- Bakkt aims to transform into a pure-play bitcoin infrastructure company as part of its updated treasury strategy.
Bakkt, a firm specializing in custody, trading, and rewards, saw its stock plummet by more than 40% in pre-market trading on Tuesday after revealing the pricing for its $75 million public offering late Monday.
Details of the offering
Bakkt is offering 6,753,627 shares of its Class A common stock at $10.00 per share, along with pre-funded warrants for up to 746,373 shares at $9.9999 each.
The gross proceeds are expected to total approximately $75 million before expenses.
The sale is scheduled to close on or around July 30, subject to customary closing conditions.
The company has also given underwriters a 30-day option to purchase up to 1,125,000 additional shares or warrants at the offering price, minus fees.
Clear Street and Cohen & Company Capital Markets are serving as joint book-running managers.
Purpose of the fundraising
Bakkt stated the raised funds will be used for general corporate purposes, including the acquisition of bitcoin and other digital assets, as well as for working capital.
This move follows a recent announcement that Bakkt aims to raise up to $1 billion through various equity and debt offerings to support its bitcoin acquisition strategy.
The firm updated its investment policy to include bitcoin as part of its treasury and corporate strategy, though it has not yet purchased any bitcoin.
Akshay Naheta, co-CEO of Bakkt, explained the company’s direction at the time:
This initiative is intended to support Bakkt’s transformation into a pure-play crypto infrastructure company and to enable us to strategically add bitcoin and other digital assets to our treasury.
Broader context and industry moves
Founded in 2018, Bakkt joins other firms allocating capital into bitcoin as part of their broader treasury strategies.
For a comprehensive view of public and private companies holding bitcoin, see the bitcoin treasury database.
Last November, reports surfaced that President Trump’s Truth Social was in advanced talks to acquire Bakkt, signaling ongoing interest in bitcoin infrastructure companies.
