Crypto Exchange Bakkt Seeks SEC Approval To Raise $1 Billion For Potential Bitcoin Treasury Play

Bakkt, a struggling crypto trading venue owned by Intercontinental Exchange, has notified the US Securities and Exchange Commission (SEC) of its plans to raise up to $1 billion through various types of securities offerings to fund a Bitcoin acquisition strategy.

In a prospectus filed with the SEC on Thursday, Bakkt said the shelf offering could include sales of Bakkt’s Class A common stock, preferred stock, warrants, and debt securities.

The S-3 filing noted that Bakkt announced an updated investment policy earlier this month “to enable us to allocate capital into Bitcoin and other digital assets as part of our broader treasury and corporate strategy,” though the company has not yet made its first purchase.

“We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources,” the filing highlighted.

The shelf registration allows Bakkt to quickly access capital markets whenever market conditions become favorable. According to the Atlanta-based exchange, the timing and size of any BTC buys will “depend on market conditions, capital market receptivity, business performance, and other strategic considerations.”

Firms Follow Strategy’s Bitcoin Playbook

Bakkt’s plans come as an increasing number of public companies begin to hold the alpha cryptocurrency as an alternative asset on their balance sheets. 

There are now roughly 140 public companies worldwide that have implemented some form of Bitcoin treasury, with Cantor-backed Twenty One, Trump Media, and GameStop recently joining the likes of Metaplanet and Semler Scientific in adopting the BTC acquisition model pioneered by Michael Saylor’s Strategy. Elon Musk’s Tesla also holds $1.2 billion of Bitcoin as of publication time.

Strategy is currently the world’s biggest corporate Bitcoin holder with its 592,345 BTC stack. That’s the equivalent of nearly 3% of Bitcoin’s total supply.

And firms are branching out beyond Bitcoin for their corporate treasuries, too. As ZyCrypto reported on Wednesday, Minneapolis-based sports betting platform SharpLink Gaming snapped up more Ethereum for its treasury, boosting its total holdings to 188,478 ETH.