Tether and Blackstone Vets Aim to Raise $1B for Bitcoin, Ethereum, Solana
Tether and Blackstone Veterans Aim to Launch $1 Billion Digital Asset Treasury
Overview of the Initiative
A pair of prominent figures from the finance and cryptocurrency sectors are embarking on an ambitious project to establish a digital asset treasury, targeting a substantial $1 billion in funding. This initiative is spearheaded by Reeve Collins, a co-founder of Tether, and Chinh Chu, a former executive at Blackstone.
Plans for Public Offering via SPAC
The duo intends to utilize their special-purpose acquisition company (SPAC), M-3 Brigade Acquisition V Corp., to facilitate the public listing of their digital asset treasury. This move aligns with a growing trend of SPAC transactions and the increasing interest in publicly traded cryptocurrency holdings.
The Rise of Crypto Treasuries
The interest in crypto treasuries has surged recently, coinciding with a favorable market environment for digital assets. Companies like Strategy, previously known as MicroStrategy, have set a precedent by pivoting their business models to focus on accumulating bitcoin, which has significantly boosted their stock prices.
Current Market Landscape
As of now, over 250 organizations, including 141 publicly traded companies, have incorporated bitcoin into their financial strategies. This number has seen a 13% increase in just the past month, reflecting a growing acceptance of cryptocurrency among institutional investors.
Expanding Beyond bitcoin
In addition to bitcoin, several companies are diversifying their treasury strategies by investing in other cryptocurrencies such as XRP and Solana. For instance, SharpLink Gaming recently announced plans for a $425 million private share sale aimed at establishing an ethereum treasury, drawing comparisons to the successful model pioneered by Strategy.
Background of the Founders
Reeve Collins, who played a pivotal role in the creation of Tether from 2013 to 2015, has a wealth of experience in the cryptocurrency space. Chinh Chu, with over two decades at Blackstone, has been instrumental in launching multiple SPACs since 2016, showcasing his expertise in navigating complex financial landscapes.
SPAC Market Trends
The current year has witnessed a notable uptick in SPAC offerings across various sectors, with 61 new SPACs raising approximately $12.3 billion. This contrasts sharply with the previous year, where 57 SPACs raised $9.6 billion, indicating a robust appetite for this investment vehicle.
Notable Developments in the Crypto Space
Recently, crypto influencer Anthony Pompliano announced plans to take his blank-check company public through a SPAC deal valued at over $750 million, further highlighting the momentum in the SPAC market.
Edited by James Rubin
