IPO News – SPACs double down on crypto, even as past mergers underperform
SPACs are coming back, and they’re rushing to capitalize on market excitement surrounding crypto, even as many past crypto-related SPAC mergers have flopped.
A flurry of blank check companies has announced mergers with newly formed cryptocurrency treasury companies, whose business is primarily buying and growing digital asset holdings like Bitcoin and Ether. While past crypto-focused SPACs mainly sought Bitcoin miners and trading platforms, these deals offer an alternative way to play the space.
The Bitcoin treasury model was pioneered by MicroStrategy (MSTR), now known as Strategy, with public investors this year essentially assigning $2 of equity value for every $1 of underlying crypto….
