Bakkt, Former Starbucks Bitcoin Partner, Running Low on Funds


Bakkt, a digital asset firm that previously partnered with Starbucks and Mastercard, has disclosed to regulators that it is running out of funds, attributing this to the rapidly evolving landscape of the cryptocurrency industry. The company indicated in a recent SEC filing that it is unlikely to have enough cash to sustain operations for the next 12 months. Bakkt also amended its quarterly report to include revised risk disclosures and a warning about the uncertainty surrounding its expansion into new markets and the potential inability to substantially increase revenues without additional financing in the near future.

Originally established in 2018 by Intercontinental Exchange, the parent company of the New York Stock Exchange, Bakkt focused on facilitating the use of digital assets through partnerships with prominent brands. Despite going public in 2021 with an initial valuation of $2.1 billion, the company has experienced significant challenges, leading to a shift in its strategy towards providing crypto trading and custody services to financial institutions and fintech companies. Bakkt’s stock price has plummeted by nearly 90% over the past year, prompting the company to seek additional funding to sustain its operations.

While Bakkt has acquired other crypto platforms and expanded internationally, uncertainties in the crypto market and the collapse of major industry players, such as FTX, have created further obstacles for the company. As a result, Bakkt is now grappling with the possibility of not generating enough revenue to avoid a cash shortage, signaling the urgent need for financial support to address its future requirements.

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