We all know how bitcoins’ relevance is rising when conversations on the commercial markets come into play. Bitcoins are ruling the world of cryptocurrencies. By now, much of the world population is aware of the existence and importance of cryptocurrencies. Learn more about bitcoin investment from bitcoin billionaire software because now is the perfect time to start
The world market arena can no more deny the rising value of bitcoins. Widespread media coverage is responsible for the industries, which is a huge boon to them. It makes such industries’ businesses ready for transactions in the financial year of 2021-22
A particular purpose acquisition company is of primary importance to ensure that the various cryptocurrency companies proclaim themselves in the public view of market dynamics. It is much needed because with the rising competition in commercial dealings, making a name for oneself is quite tricky
A company needs to make sure that they derive enough profits from sustaining itself. If they are not successful in doing so, they will soon be on the verge of perishing. An initial public offering in the year 2021 is under consideration from trading apps
Many trading apps can also become a contender for candidature in the SPAC deal. But before we go into the details of SPACs, let us first understand what SPAC is
What is SPAC
SPAC refers to the Special Purpose Acquisition Company. It is a company that has no commercial operations to raise capital from the market. These companies take birth to raise money via Initial Public Offering (IPO) to acquire an existing company.
It is the investors or sponsors who form these SPACs. Their idea is to start a company with expertise in a concerned industry or a business sector. The sole motive is to pursue deals from their concerned areas.
These are also called “Blank Check Companies.” They have been around the market cycle for decades now. In the past few years, they have become prevalent and have attracted big names and wealthy people as underwriters and investors. They raised the record amount of material currency in the year 2019.
Investors in these companies range from well-known private equity funds to the general public as well. The SPACs have around two years to complete a particular acquisition. If they fail to do so, they have to return all the money to their investors. These companies tend to seek institutional investors before they offer their shares to the general public.
As of late, statistics show that more than 50 SPACs were established in early August 2020. It has raised around $21.5 billion! Now that you know what SPACs are and how they have made a place in the commercial arena, let us find out the 7 SPACs needed to play the rise of bitcoins and various other crypto-currencies.1.
1. VPC Impact Acquisition Holdings
VPC Impact Acquisition Holdings also deals with blank checks. The U.S. Security and Exchange Commission is where it is under registration. The state of cayman islands incorporates it.
VPC Impact Acquisition Holdings’ shares saw a surge due to reports that are importing the Bakkt, a cryptocurrency exchange. Bakkt introduced the first-ever regulated futuristic bitcoin exchange and fully regulated opinions on contract.
Estimates say that the shareholders of this SPAC will be holding eight percent of the designated company. Under the New York Stock Exchange, Intercontinental Exchange will take over sixty-five percent of the Bakkt after completing the merger.
2. Ribbit Leap
It features in the New York Stock Exchange list. It is a SPAC that is targeting a firm in the finance technology space. It is a significant investor in many companies in the fintech base, including Robinhood and Coinbase. Two current executives of the Ribbit Leap lead the SPAC and can be considered a cryptocurrency firm
3. Burgundy Technology Acquisition Corporation
The Burgundy Technology Acquisition Corp (BTAQ) is a corporation working as a blank check company. The company aims to acquire more than one business or asset by merging with other prevalent cryptocurrency exchanges. Its functions primarily include the capital stock exchange, acquisition of assets, purchase of stocks, and reorganisation
It features the National Association of Security Dealers Automated Quotations Exchange (NASDAQ), with headquarters in New York. The company is under the leadership of an ex Hewlett Packard and SAP SE CEO
Technology and enterprise software is the main target of Burgundy Technology Acquisition. The company has been highlighting Israel as their primary area of focus in business administration. It signals that eToro can be the potential target for the above mentioned SPAC
4. Far Peak Acquisition Corporation
Far Peak Acquisition Corporation is in registration with the U.S. Security and Exchange Commission. It is also primarily engaged in the business of blank checks
Tom Farley, the NYSE president, is leading this SPAC. Far Peak Acquisition will go after a crypto-currency company. Coinbase received an investment of $75 million from NYSE in the year 2015. It was the most sizeable investment ever done in a bitcoin firm during those times
The very same year, the NYSE introduced a bitcoin index. Tom Farley named Bitcoin as a growing market and emphasised that it can follow the commercial industry’s bull trend
Diginex is the parent company of EQUOS, dealing in digital financial services and blockchain solutions. It has its headquarters in Hong Kong, with a total funding amount of $63 million. As of January 22, 2021, it completed a $38.6 million private placement
This former SPAC is the first-ever ecosystem dealing with fully digital assets, which comprises the exchange of cryptocurrency that will feature on NASDAQ. Until December, it traded below ten dollars. After the SPAC merger, it was viewed as a bitcoin player. OTC trading operations, along with the exchange of cryptocurrency are what the company offers
Estimates say that Diginex will launch a secondary product in January, with a numerous futures contract. The company has broader plans to limit its business in Asia and Europe but wishes to spread its roots to the USA markets
6. GS Acquisition Holdings II
It refers to the Goldman Sachs acquisition holdings of the New York Stock Exchange. It is responsible for raising more than $700 million in its offering to the commercial arena’s stock exchange
The Goldman Sachs Group is a multinational bank for investing, with its headquarters situated in New York, U.S.A, established in the year 1869. This America- based company provides financial services in investment management, security benefits, management of assets, prime brokerages, and securities underwriting
It also provides an opportunity for investment banking to institutional investors around the globe. Mutual funds and prime brokerage are also a few works they engage. Goldman Sachs reported that they earned $24.74 per common share and $12.08 per share in the fourth-quarter earnings of 2020
People say that Goldman Sachs is in talks with eToro post the exchange of cryptocurrency. They also had a conversation with Goldman about a potential IPO (Initial Public Offering)
Goldman is exploring its opportunities of entering the cryptocurrency market soon. It means that it is looking for limited ownership of a cryptocurrency based firm through this SPAC
7. Lefteris Acquisition Corp
The Lefteris Acquisition Corp is a blank check company whose establishment took place recently. This company aims to effect a merger, capital stock exchange, acquisition of assets, purchase of stocks, and reorganisation with one or more businesses
They are targeting the financial technology sector. Hence Lefteris Acquisition Corp might amalgamate with a cryptocurrency firm pretty soon. The former management team is from Etrade, and TD Ameritrade will take over the management of this company
Asiff Hirji is the president of the blockchain figure of this company since January 2020. He was the former COO of Coinbase from December of 2017 to June 2019
The picture regarding the SPACs happens to be precise. We know how bitcoins are ruling the financial markets at this point. No business can think of making progress in this world of commercial, financial marketing if they do not resort to bitcoins usage. Cryptocurrencies are the call of the day, whether you accept it or not
We hope that we could throw some light on the functioning of the various spaces. We have tried to make these complicated things easier for you to comprehend. Investments in the arena of SPACs and cryptocurrencies can help you garner unimaginable profits. The business is a long-time investment, and you need not worry about incurring losses in it. Gaining bitcoins can come in handy. They are on the same level as any other currency. We hope that you achieve what you want—wishing you all the best in your future endeavors!
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.