Shares of Bakkt Holdings Inc. (NYSE:BKKT) plummeted 39% after the digital asset firm announced pricing for a public stock offering that significantly undercut its previous market value.
The offering, priced at $10 per share, is well below Monday’s closing price of $17.17. Bakkt is issuing 6,753,627 shares of Class A common stock along with pre-funded warrants for up to 746,373 additional shares. The warrants were priced at $9.9999 each, just under the share offering price.
The transaction is expected to generate approximately $75 million in gross proceeds. Bakkt plans to allocate the funds toward purchasing Bitcoin and other digital assets under its existing investment policy, as well as for general corporate purposes and working capital.
Subject to standard closing conditions, the offering is anticipated to close on or around July 30, 2025. Additionally, the company granted underwriters a 30-day option to acquire up to 1,125,000 more shares or pre-funded warrants at the offering price, minus typical underwriting fees.
Investors reacted negatively to the dilution risk, with the sharp markdown in share price sparking a wave of selling pressure across the stock.
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