Bakkt files for SEC shelf registration amid the growing interest in crypto

The publicly traded crypto custody and loyalty rewards firm Bakkt plans to raise $1 billion in an equity and debt offering to support a “Bitcoin strategy”.

This is according to filings submitted to the US Securities and Exchange Commission on Thursday, June 26.

The shelf offering could consist of sales of Bakkt’s Class A common stock, preferred stock, warrants, and debt securities. The shift would be the latest strategic change for Bakkt. However, according to the SEC filing, the firm has not yet made any crypto purchases.

Bakkt files for SEC shelf registration amid the growing interest in crypto 

Bakkt submitted a filing to the SEC through a “shelf” registration process. With this shelf registration, the firm can occasionally sell any mix of the securities mentioned in the prospectus in one or more offerings. 

The filing stated that Bakkt may sell securities occasionally through one or more offerings, with amounts, prices, and terms decided at the time of each offering. 

This prospectus outlined the basic terms of these securities and how the firm will offer them. According to the filing, the total price for the securities Bakkt sells will not go over $1 billion.

The SEC also required the company to include the price they would pay for those securities and the amount of money they expected to make from the sale.

This came after Bakkt said it had “updated” the investment policy to specifically allocate capital into Bitcoin and other digital assets as part of its treasury and corporate strategy on June 10.

Founded in 2018, Bakkt is now an emerging crypto treasury firm that allows investors to make a leveraged bet on digital assets such as Bitcoin, ETH, and SOL by financing digital asset purchases in the traditional capital markets.

Earlier, the Atlanta-based firm, which started with backing from the New York Stock Exchange (NYSE)  owner Intercontinental Exchange, offered an institutional-grade trading platform for daily physically-settled Bitcoin futures before trying to tokenize rewards points and crypto custody. This product failed to gain traction. The company went public in 2021.

Meanwhile, Bakkt’s initial Chief Executive Officer, Kelly Loeffler, resigned in 2019 to briefly serve as a Republican United States senator in Georgia under the first Trump administration.

Moreover, President Donald Trump’s social media company, Truth Social, was said to be in “advanced talks” to acquire Bakkt last November.

Bakkt officials highlight the firm’s focus on crypto

Following the announcement that Bakkt had “updated” the investment policy, Akshay Naheta, co-CEO of Bakkt, stated that this plan aims to help Bakkt change into a company that focuses solely on crypto infrastructure and allows them to add Bitcoin and other digital assets to their treasury carefully.

According to Naheta’s speculations, their strategy shows their strong belief in the future of digital assets and their goal for Bakkt to grow globally and become a leader in programmable money.

Andy Main, Co-CEO and President of Bakkt, also commented on the topic of discussion. 

According to him, their updated investment policy shows their confidence in digital assets’ long-term potential and dedication to seeking strategic opportunities that increase shareholder value. 

Main said this is a significant step for the company as it looks to expand into global payments and remittance systems using stablecoins while being part of the ongoing development of the digital asset ecosystem.

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