Crypto platform, Bakkt Holdings, has filed a shelf registration with the U.S. Securities and Exchange Commission (SEC), to raise up to $1 billion via a range of securities. The sum raised will primarily support general corporate operations and working capital needs. Importantly, Bakkt also disclosed that a portion of the proceeds may be used to invest in Bitcoin or other cryptocurrencies in line with its updated investment policy.
Bakkt’s $1 Billion Shelf Registration for Buying Bitcoin
This move allows Bakkt to issue securities such as Class A common stock, preferred shares, debt instruments, warrants, or units, either individually or in combination, over time, based on market conditions.
The registration, filed under an S-3 form, offers Bakkt flexibility to sell securities in one or multiple offerings. Details like the size, price, and terms of each offering will be provided in separate prospectus supplements accompanying any sale.
Bakkt’s Class A common stock and public warrants are already listed on the New York Stock Exchange under the symbols “BKKT” and “BKKT WS.” The company stated that each offering will specify whether the new securities will be listed on any exchange.
Under the filing, Bakkt may offer a variety of securities, including Class A Common Stock, which carries voting rights but currently does not offer dividends. The company may also issue Preferred Stock in different series, with each series carrying specific rights and terms as determined by the board of directors.Also, Bakkt could offer Debt Securities, both senior and subordinated, some of which may be convertible into common stock. Warrants may also be sold, either independently or alongside other securities. Lastly, Bakkt may issue Units, which would package multiple types of these securities together in a single offering.
Bakkt emphasized that securities could be sold directly to investors or through intermediaries like underwriters or dealers, with each arrangement detailed in future filings.
Companies are turning to alternative investment avenues for buying and holding more Bitcoins. In a similar move, Japanese publicly listed company Metaplanet approved the issuance of $210 million in zero-interest ordinary bonds to the EVO Fund. The capital raised from this bond issuance will be used to acquire additional Bitcoin.
As of now, Metaplanet holds approximately 12.345K BTC, valued at $1.32 billion. Meanwhile, one of the earliest major movers, Strategy (formerly MicroStrategy), has converted a significant portion of its treasury into Bitcoin. Strategy now holds 464.354K BTC worth $49.76 billion.
Also Read: EU Hints at Lowering Tariff on US: Bitcoin $120K Next?
