Bakkt Eyes Crypto Treasury with Potential $1 Billion Securities Offering

Bakkt, crypto infrastructure company and recently publicly-traded under BKKT on the New York Stock Exchange, has made a big move. To date, they’ve filed a form with the SEC to allow them to issue up to $1 billion in securities. Unlike most SPACs, Bakkt has filed to bring both common and preferred stock. This step demonstrates their serious interest in including digital assets in their corporate structure congruous with the well-documented trend of companies creating crypto treasuries. Bakkt never directly stated that the $1 billion would be used to purchase crypto. Nevertheless, this move is an unmistakable signal of a major strategic pivot towards ushering digital assets into its financial framework.

Bakkt’s new investment policy now allows for investment in Bitcoin and other cryptocurrencies. This policy change is part and parcel of the company’s prevalent digital asset ambitions, as it seeks to expand its footprint in the nascent industry. Bakkt is well aware of the risks in its business. Most notably, it underscores that 12 distinct risk factors can impact both its operational performance and the valuation of its securities in the market.

Other companies are exploring similar strategies. Upexi, for instance, announced plans to raise $100 million to accumulate Solana, influenced by President Donald Trump's executive order on Bitcoin and digital assets. Michael Saylor’s software company, Strategy, has amassed a significant Bitcoin stockpile of nearly 600,000 Bitcoins, currently valued at over $60 billion. Adding to the fervor, GameStop recently announced its foray into the crypto space, disclosing plans to start accepting Bitcoin as early as March.

Importantly, Bakkt already has a cache of over $500 million in Bitcoin on hand. With the expected addition of new capital through the SEC-mandated securities offering, it would be vastly outgunned in new digital capital. If we start seeing more firms adopt such models in an attempt to realize the potential of crypto treasuries, we might see the world of corporate finance change fundamentally.