Parataxis Holdings, a Bitcoin investment platform, is looking to go public through a merger with a $200 million special acquisition company.
The New York Stock Exchange-listed SPAC SilverBox Corp IV entered into a non-binding letter of intent with Parataxis Holdings LLC on Monday, an affiliate of Parataxis Capital Management, a digital asset investment firm founded in 2019.
SilverBox Corp IV is an affiliate of SilverBox Capital LLC, a company founded in 2020 to provide alternative investment management services and sponsor SPACs.
The proposed merger indicates growing institutional investor interest in Bitcoin and other cryptocurrencies.
If it proceeds, the merger would bring Parataxis’ Bitcoin-focused investment platform to public markets, and the new company would focus on institutional-grade Bitcoin (BTC) and crypto investments, according to the announcement.
The target clients are institutional investors seeking Bitcoin exposure through proprietary strategies, and the firm aims to capitalize on the growing demand for Bitcoin as a “treasury and strategic asset.”
Publicly-listed “highly scalable” crypto platform
Joe Reece, co-managing partner at SilverBox Capital, said the merger represents an opportunity to introduce a “unique and highly scalable digital asset management platform to the public markets.”
The initial focus includes a transaction under development in South Korea, which the parties described as an “underserved market with significant digital asset demand that can be met with the launch of the proposed platform.”
The deal is still in early stages, with just a letter of intent with standard disclaimers that no definitive agreement exists yet, and the deal may not close. Clear Street, a cloud-native platform for multi-asset clearing and portfolio management, is the lead financial adviser.
SilverBox shares move
SilverBox completed its $200 million initial public offering in August 2024, and its stock currently trades on the NYSE under the ticker “SBXD.”
However, it has been a slow performer with just 6.5% gained since the beginning of the year, and the largest of those gains coming over the past couple of days as the SPAC merger news broke.
Pomp’s crypto SPAC performs well
Anthony Pompliano’s fintech-focused SPAC, ProCap Acquisition Corp, debuted on the Nasdaq on May 20.
ProCap Acquisition Corp shares have performed well since, hitting an all-time high of $11.35 on June 9, up 5.5% since its launch.
A SPAC is a company that raises money through an IPO with the sole purpose of acquiring or merging with another business within a set time frame.
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