Will a Crypto specific SPAC pave the way for Blockchain acquisitions ?
For institutional investors awaiting spot-traded Bitcoin ETFs, crypto-focused SPACs could present another opportunity. Filed on 11/12/2021 with the SEC, a $201 million fund has been announced by a newly formed group called Crypto 1, which will soon begin approaching crypto firms with investment proposals. Previous examples of crypto SPAC mergers include eToro’s $10 billion SPAC merger that took place in March this year. Crypto 1 was founded by Dr. Najam Kidwai, with a set goal of $201 million to acquire a crypto target.
With a maximum investment ceiling of $230 million, the Crypto 1 SPAC consists of 23 million units, each priced at $10. It holds 23,000,000 Class A ordinary shares, with 17,250,000 redeemable warrants. The latter allows investors to buy stock shares at a fixed price in the future. Because of this, stock warrants provide an extra incentive to take part in the shell company.
Dr. Najam Kidwai is a known FinTech/blockchain investor and is currently a committee member of Frontier Ventures — a VC fund that also works in the sector. The fund has invested in over 50 tech startups, totaling $4 billion of injected capital.