Bakkt Aims to Raise $1 Billion to Establish Bitcoin Reserves Amid Industry Changes

The public company Bakkt has embraced the global trend of accumulating reserves in Bitcoin, as revealed in documents submitted to the SEC.

Founded in 2018, the company’s leadership aims to raise $1 billion through the sale of shares, warrants, and debt securities to facilitate the purchase of digital gold.

On June 10, Bakkt announced an update to its investment policy, which now includes investments in Bitcoin and other digital assets as part of a «broader corporate and treasury strategy.» According to the filings with the SEC, no purchases have been made thus far.

The firm expressed confidence in the future of digital assets and sees this move as a component of its strategy for international growth and strengthening its position in programmable money.

During the «ICO frenzy» and chaotic market growth of 2017-2018, the Bakkt platform was perceived in the industry either as a step towards maturity and institutionalization or as an attempt by Wall Street to dominate Bitcoin.

The launch of the «revolutionary platform» faced multiple delays. Ultimately, in the fall of 2019, trading began in physically-settled Bitcoin futures; however, trading volumes were minimal compared to the Chicago Mercantile Exchange (CME).

In 2021, Bakkt’s president, Adam White, announced his departure. By 2023, the company fully shifted its focus to B2B solutions, discontinuing its app for retail investors.

In 2024, Bakkt raised concerns about its ability to continue operations and warned the SEC about a potential closure of the business.

After a series of setbacks and a change in focus, Bakkt’s new initiative appears to be an effort at a «reset,» driven by the desire to adapt to the evolving industry landscape.

It is worth noting that analysts at Coinbase have highlighted systemic risks related to the growing interest in Bitcoin reserves.