Rebecca Cruz Bakkt stock tumbles 40 percent after pricing a $75 million public offering to buy bitcoin and digital assets. Investors react sharply as the crypto treasury play unfolds.
Bakkt stock plunged more than 40 percent in pre-market trading on Tuesday after the company announced the pricing of a $75 million public offering aimed at purchasing bitcoin and other digital assets. The move has sent shockwaves through investors, highlighting the risks associated with corporate crypto treasury strategies.
Shares of Bakkt, which had already closed down nearly five percent at $17.17 on Monday, collapsed further to approximately $10.17 following the announcement. The firm revealed it would offer 6,753,627 shares of its Class A common stock at $10 per share. In addition, Bakkt plans to sell pre-funded warrants for up to 746,373 shares at nearly $10 each. Pending customary closing conditions, the sale is expected to close around July 30.
Bakkt estimates the gross proceeds from this offering at roughly $75 million before underwriting discounts, commissions, and other expenses. The company intends to use the funds for general corporate purposes, including acquiring bitcoin and other digital assets as well as bolstering working capital. To provide additional flexibility, Bakkt has granted underwriters a 30-day option to purchase up to 1,125,000 additional shares or pre-funded warrants at the same offering price, minus fees. Clear Street and Cohen & Company Capital Markets are acting as joint book-running managers for the offering.
The announcement marks the latest step in Bakkt’s broader strategy to transform into a crypto infrastructure-focused firm with a strong treasury allocation in bitcoin. Last month, the company filed a prospectus with the U.S. Securities and Exchange Commission revealing plans to raise up to $1 billion through equity and debt offerings. This funding initiative is intended to finance the acquisition of bitcoin and other digital assets, positioning Bakkt alongside other corporate treasury firms leveraging traditional capital to gain exposure to cryptocurrencies.
Bakkt has yet to execute any major crypto purchases, but the company has updated its investment policy to allocate capital into digital assets as part of its corporate treasury strategy. Akshay Naheta, co-CEO of Bakkt, previously stated that this initiative is designed to support the company’s evolution into a pure-play crypto infrastructure company while strategically adding bitcoin and other digital assets to its treasury.
The $75 million offering reflects growing corporate interest in cryptocurrencies. Several other firms have explored treasury allocations to digital assets, seeking both diversification and upside potential. Bakkt’s approach is part of a broader trend where firms aim to use traditional capital markets to gain leveraged exposure to cryptocurrencies such as bitcoin, Ethereum, and Solana.
Despite the long-term vision, Bakkt stock’s steep decline underscores the volatility of investor sentiment when traditional financial markets intersect with crypto initiatives. The 40 percent drop in pre-market trading signals investor caution over dilution risk, market timing, and the broader impact of corporate crypto treasury strategies on share value. Analysts suggest that while Bakkt’s long-term positioning could be strong, the immediate market response reflects concerns over execution and timing of crypto purchases.
Founded in 2018, Bakkt operates in crypto custody, trading, and rewards sectors. The firm has gained attention for its efforts to integrate traditional capital markets with digital asset infrastructure. Bakkt’s stock volatility illustrates the challenges that public companies face when attempting to translate crypto enthusiasm into shareholder value. Interestingly, Bakkt was reportedly in advanced discussions with former President Trump’s Truth Social for potential acquisition talks in late 2024, reflecting the company’s appeal to both corporate and retail investors in crypto and fintech spaces.
While Bakkt navigates market reactions to its $75 million public offering, the company’s strategic push into bitcoin acquisition highlights the growing intersection of traditional finance and crypto treasury management. Investors and analysts will closely monitor how Bakkt executes its capital deployment and whether these moves translate into long-term growth and crypto adoption success.
Bakkt’s stock performance over the next weeks will be critical in assessing market confidence in corporate cryptocurrency investments. For shareholders, the key question remains whether the company’s treasury strategy will generate meaningful returns or continue to face volatility-driven pressures.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
