Bakkt Files to Sell Up to $1 Billion in Securities For Potential Bitcoin Play

Digital Asset Platform Bakkt Holdings has informed the American SEC of its plans to sell up to $ 1 billion in securities to offer new capital for a possible expansion of its Bitcoin business treasure box.

Bakkt’s S-3 submit On Thursday, a Pole of $ 1 billion of potential effects, including ordinary shares, preferred stock, debts, warrants and bundled share units, which can be tapped when market conditions become favorable.

Supported by Intercontinental Exchange, the plans of the platform come as a growing number of public companies start to keep the largest crypto in the world as an alternative possession on their balance sheets.

Bakkt plans to “explore” these “financing alternatives” for “acquiring bitcoin or other digital assets”, is a summary of the prospectus of the archiving.

The platform did not respond immediately Decrypts Request for comments on its worldwide strategy, nor whether this would reflect the current acquisitions from companies such as Michael Saylor’s strategy and metaplanet.

The registration functions such as a pre-approved credit line, so that companies can quickly raise money when Bitcoin prices fall or investors peak appetite, instead of searching for regulatory approval every time they need capital.

The S-3 entry follows on the investment policy of Bakkt June in June updateWhat the capital can assign to Bitcoin and other digital assets as part of the broader Treasury strategy.

However, the company does not yet have to make purchases for the active after the update.

It is worth noting that Bakkt claims that the timing and size of Bitcoin purchases “will be dependent on market conditions, admissibility of capital market, business performance and other strategic reasons.”

Eyes on Asia

The update of Bakkt’s investment policy also claims that “actively evaluating worldwide jurisdictions”. This is a good omen for Asian cryptom markets, where legal frameworks are considerably aged.

“Bakkt’s jurisdiction-flexible strategy is well positioned to succeed in Asia,” said Charmaine Tam, head of OTC sales and trade at Hex Trust, a financial institution for digital assets based in Hong Kong, told Decrypt.

Markets like Hong Kong And Singapore Offer a “strong combination of regulatory clarity, deep liquidity and adult financial infrastructure”, where the outlook of baking for institutional strategies for digital assets can flourish, TAM said.

The move “hits a smart balance in Asia”, but the success would depend on how Bakkt plays his “compliance, timing and performance,” said Hank Huang, CEO of Kronos Research, said Decrypt.

Nevertheless, regulations for digital assets can be problematic in view of the complexity of the activa class. “There is no worldwide standard. Although progressive, each jurisdiction has its unique set of rules,” TAM notes.

“Having said, it will be a balancing act,” TAM noted, adding that the success of Bakkt is decreasing from his assets “to navigate carefully” legal nuances and in accordance with local operations for any jurisdiction in which it may want to operate.

Edited by Sebastian Sinclair