A SPAC, or Special Purpose Acquisition Company, is a company that has no commercial operations and is formed strictly to raise capital through an IPO for the purpose of acquiring or merging with an existing company.
SPAC has been around for decades, but has seen a Cambrian explosion in recent years. In 2020, 247 SPACs were created in the United States with $ 80 billion invested, and in the first quarter of 2021 alone, a record $ 96 billion was raised from 295 newly formed SPACs. By comparison, only two SPACs came on the market in 2010.
Simply put, SPAC are fast paths to IPOs for the impatient. It is a desirable way forward for crypto and blockchain companies, as SPAC IPO is usually faster, easier and cheaper than the traditional method. In addition, crypto companies are a new and potentially attractive opportunity for SPAC investors.
Lessons from Coinbase’s long IPO
Just last year, many high-profile crypto companies, including eToro, Bakkt and CompoSecure, went or are planning to be listed via SPAC. Many have learned a lesson from watching Coinbase’s long IPO process that lasted more than six months.
On the European side of the Atlantic, however, we have not seen so many SPACs in general, and obviously none with a specific focus on the crypto industry. This is about to change with the IPO of the newly formed Swedish company HODL SPAC Europe AB, with the ticker “HODL.”
According to the company message, given that the IPO will be fully subscribed, the company will go public on the Swedish Spotlight stock exchange on January 21 after raising $ 3.2 million in capital.
The group of initial investors includes cryptocurrencies such as Bitcoiner Erik Wall, Youtubers and educators Ivan “on tech” Liljeqvist and the crypto trader bt.cx CEO Christian Other. Investors and advocates for women in companies Michaela Berglund enters as chairman of the company.
“Great opportunity for women to enter this industry”
The main purpose of HODL SPAC is to acquire at least one company in the blockchain industry with a company value of up to SEK 500 million (approximately $ 55 million) within 24 months of listing.
“The fact that we use HODL as our ticker says it all about our long-term commitment to this market and the business opportunity we are looking for. WAGMI,” said HODL SPAC CEO Vahid Toosi, referring to the popular crypto theme “We Are Gonna Make It” .
“The opportunity to enable revolutionary business ideas to grow is incredible in the blockchain with the ongoing transition, including the growth of Metaverse and Web 3.0. We want to create value by helping blockchain companies accelerate their development through an experienced team and by listing, and with everyone benefits that come with it. ”
Says HODL SPAC’s chairman Michaela Berglund and highlights opportunities for women to enter the crypto industry.
“There is a great opportunity for women to enter this industry early, which in fact already represents trillions of dollars globally. Women have generally been more cautious about investing. My view is that in addition to seeking the opportunity to work in the industry, women can also start investing in it, in this way they can assimilate the value creation of innovation on the same terms as men, ”says Michaela Berglund.
With a summary of the most important daily stories in the world of crypto, DeFi, NFT and more.
Get one edge in the cryptocurrency market
Get access to more crypto insights and contexts in each article as a payment member in CryptoSlate Edge.
Join now for $ 19 / month Explore all the benefits