Key Takeaways
- Bakkt shares fell over 40% following a $75 million public providing announcement.
- Funds raised are supposed for bitcoin and digital asset purchases and common functions.
- Bakkt goals to rework right into a pure-play bitcoin infrastructure firm as a part of its up to date treasury technique.
Bakkt, a agency specializing in custody, buying and selling, and rewards, noticed its inventory plummet by greater than 40% in pre-market buying and selling on Tuesday after revealing the pricing for its $75 million public providing late Monday.
Particulars of the providing
Bakkt is providing 6,753,627 shares of its Class A standard inventory at $10.00 per share, together with pre-funded warrants for as much as 746,373 shares at $9.9999 every.
The gross proceeds are anticipated to complete roughly $75 million earlier than bills.
The sale is scheduled to shut on or round July 30, topic to customary closing situations.
The corporate has additionally given underwriters a 30-day choice to buy as much as 1,125,000 extra shares or warrants on the providing value, minus charges.
Clear Avenue and Cohen & Firm Capital Markets are serving as joint book-running managers.
Function of the fundraising
Bakkt said the raised funds will likely be used for common company functions, together with the acquisition of bitcoin and different digital belongings, in addition to for working capital.
This transfer follows a current announcement that Bakkt goals to lift as much as $1 billion by way of numerous fairness and debt choices to help its bitcoin acquisition technique.
The agency up to date its funding coverage to incorporate bitcoin as a part of its treasury and company technique, although it has not but bought any bitcoin.
Akshay Naheta, co-CEO of Bakkt, defined the corporate’s route on the time:
This initiative is meant to help Bakkt’s transformation right into a pure-play crypto infrastructure firm and to allow us to strategically add bitcoin and different digital belongings to our treasury.
Broader context and business strikes
Based in 2018, Bakkt joins different corporations allocating capital into bitcoin as a part of their broader treasury methods.
For a complete view of private and non-private corporations holding bitcoin, see the bitcoin treasury database.
Final November, experiences surfaced that President Trump’s Fact Social was in superior talks to accumulate Bakkt, signaling ongoing curiosity in bitcoin infrastructure corporations.