Many Crypto SPAC Deals Now In Jeopardy: Forbes

A number of planned mergers between crypto and web3 companies with SPACs are being delayed or canceled as a result of the recent market rout, Forbes reports.

SPACs during the pandemic became particularly appealing to crypto firms, whose unique business models could pose challenges to getting listing approval through traditional routes of going public, such as an IPO. In total, 14 firms such as metaverse infrastructure company InfiniteWorld, crypto mining companies CoreScietific, Cipher Mining and Bakkt, and USDCUSDC +0.1%-backer Circle, entered merger agreements with SPACS in 2019.

However, only five of 14 deals announced since have actually gone through as the market for SPACs crashed with the market reversal. Read more.

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Alec Gores Aims to Shutter Trio of SPACs Early

Gores Holdings VII, the largest of the three, raised $550 million in February 2021, while Gores Technology Partners II pulled in $460 million and Gores Technology Partners gathered $275 million in March 2021. The SPACs plan to get shareholder approval to accelerate their liquidation sometime in December.