The US Securities and Exchange Commission (SEC) has approved Bakkt‘s shelf registration application, providing a lifeline that could pull the company back from the precipice.
The cash-strapped crypto firm revealed late on Wednesday that the “universal shelf” registration of the crypto custody and trading platform had been approved by the SEC, as shown in a recently filed Form S-3.
With the approval of the regulator, Bakkt can raise additional funds over the next three years through securities sale offers.
In particular, Bakkt can raise up to $150 million in fresh capital thanks to the shelf registration, which eliminates the need for ongoing SEC approval.
According to a press release from the firm, this can be in one or more offerings as long as the registration is successful.
The company’s recent statement emphasized its financial situation, which is why Bakkt is providing a lifeline.
Even though the crypto market as a whole and Bitcoin saw tremendous growth in 2023, the custody provider had to reimburse millions of dollars’ worth of losses.
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