Crypto firm Bakkt issues warning about its financial viability

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8th February 2024 – (New York) Bakkt, a prominent crypto platform that made headlines when it was launched in 2018 by the owner of the New York Stock Exchange, has raised concerns about its ability to sustain its operations. In a filing with the U.S. Securities and Exchange Commission on Wednesday, the company stated that it may not be able to continue as a going concern. It cited insufficient funds to support its operations for the next 12 months.

Established by Intercontinental Exchange, which owns major derivatives exchanges and the NYSE, Bakkt initially aimed to facilitate bitcoin (BTC) transactions for Starbucks customers. Kelly Loeffler, who would later become a U.S. Senator, served as the company’s first CEO. While the company launched a digital wallet in 2021, it discontinued this service last year, shifting its focus towards providing technology solutions for business-to-business transactions.

Despite efforts to promote bitcoin as a payment asset and leverage the advantages of the Bitcoin blockchain, widespread adoption and success in this area have remained elusive. However, there are initiatives like the Lightning Network, a layer-2 blockchain solution designed to enhance the efficiency of Bitcoin transactions, which hold promise for realizing these ambitions.

Bakkt went public in 2021, but its stock has experienced a significant decline in value since then. On Wednesday, the company’s stock closed at $1.45 per share, a substantial drop from its peak of over $40 in 2021.