Bakkt Holdings submitted a $1 billion temporary issuance, which may stimulate Bitcoin purchases.

Gate News bot reports that, according to CoinTelegraph, the encryption software company Bakkt Holdings Inc. hopes to raise up to $1 billion through various types of security issuances to fund Bitcoin purchases.

The company, a subsidiary of Intercontinental Exchange, the parent company of the New York Stock Exchange, submitted an S-3 form to the U.S. Securities and Exchange Commission on Thursday, revealing its intention to issue common stock and securities. The company stated that it can issue up to $1 billion of Class A common stock, preferred stock, debt securities, warrants, or a combination of these assets.

The document states that Bakkt updated its investment policy earlier this month "to allow us to allocate funds to Bitcoin and other digital assets as part of our broader financial and corporate strategy," but has yet to make its first purchase.

The document added: "We may use excess cash, proceeds from future equity or debt financing, or other sources of capital to acquire Bitcoin or other digital assets."

The so-called suspension of registration allows Bakkt to quickly enter the capital market when conditions are favorable, which is particularly important considering its history of losses and ongoing operational issues.

Bakkt was established in 2018 and acknowledges in its documents that it has a "limited operating history and a history of operating losses."

The document also raises very specific warnings about future operations, stating that it "has identified certain circumstances and events that raise substantial doubt about our ability to continue as a going concern."

The company confirms that the timing and scale of any cryptocurrency purchases will depend on market conditions, capital market acceptance, business performance, and other strategic considerations.

According to Google Finance, Bakkt's stock price listed on the New York Stock Exchange rose by 3% on Thursday, reaching $13.33. However, since the beginning of this year, the stock has fallen by 46%.

After the company disclosed that its two major clients, Bank of America and WeBull, did not renew their commercial agreements, Bakkt's stock price plummeted by 30% in March.