US-based cryptocurrency exchange Bakkt has become one of the latest companies to jump on the bandwagon of growing institutional adoption of Bitcoin.
Accordingly, Bakkt may purchase Bitcoin (BTC) after the $1 billion shelf offer is presented.
At this point, Bakkt aims to raise up to $1 billion through various securities issuances that can be used to finance the purchase of Bitcoin. Since Bakkt has filed Form S-3 with the SEC to issue securities in one or more issues, with the number, price and terms determined at the time of the issuance, with the total issuance not to exceed $1 billion.
This process, called shelf registration, allows Bakkt to quickly issue bonds and buy Bitcoin and cryptocurrencies with them when the right conditions are met.
“…We may acquire Bitcoin or other digital assets using excess cash, proceeds from future equity or debt financings, or other capital sources…”
Bakkt’s move comes after it updated its investment policy earlier this month to allow it to buy BTC and other cryptocurrencies. Bakkt announced that its board of directors had approved a plan to invest in cryptocurrencies, including Bitcoin.
However, Bakkt has not yet purchased or announced any Bitcoin or other digital assets under its updated investment policy.
*This is not investment advice.
