Crypto's New Player: KRAKacquisition Aims High
A Bold Plan from a New SPAC
KRAKacquisition Corp., a fresh face in the world of special purpose acquisition companies (SPACs), is making waves with a bold plan. Backed by an affiliate of the popular crypto exchange Kraken, this new venture is setting its sights on a $250 million public offering.
Details of the Offering
- Registered in the Cayman Islands
- Offering 25 million units at $10 each
- Each unit includes:
- One Class A share
- A piece of a warrant (allows investors to buy more of the company's stock)
Nasdaq Listing and Future Trading
KRAKacquisition is eyeing a listing on the Nasdaq under the ticker symbol “KRAQU.” In the future, the Class A shares and warrants will trade separately as “KRAQ” and “KRAQW.”
Open to Mergers, No Target Yet
The company is open to merging with any business or industry, but it hasn't picked a target yet. Its sponsors include:
- Kraken
- Venture capital firms Tribe Capital and Natural Capital
Santander as Sole Book-Running Manager
The company's filing mentions Santander as the sole book-running manager, meaning the Spanish bank is in charge of managing the securities offering. This move comes after Kraken raised $800 million last year at a $20 billion valuation, with support from Tribe Capital and other big names like Jane Street and DRW Venture Capital.
Crypto Industry Surge in Public Offerings
The crypto industry has seen a surge in public offerings, with companies like Circle, Gemini, and Figure Technologies going public last year. On the same day as KRAKacquisition's announcement, BitGo, a firm specializing in digital asset security, filed for a $200 million public offering. BitGo manages around $104 billion in assets and recently gained conditional approval for a national trust banking charter.
Investment Thesis Highlights
KRAKacquisition's investment thesis highlights:
- Inflation and the erosion of the U.S. dollar's purchasing power
- The role of hard assets as hedges
- Bitcoin's growing importance as a decentralized store of value
As an affiliate of Kraken, KRAKacquisition leverages the crypto exchange's:
- Deep industry ties
- Regulatory expertise
- Years of risk management experience
