
According to Reuters.
The merger is expected to close between October and December of this year, with the company's goal of raising over $1 billion in the process.
The company stated that it will manage a cryptocurrency portfolio that includes Bitcoin, Ethereum, and Solana, and it plans to align its strategy with the U.S. strategic cryptocurrency protection zone. The overall drive is part of a broader effort to package cryptocurrencies into equities, making them more appealing to institutional investors.
The idea is not new. Michael Saylor's company MicroStrategy did something similar when it adopted a Bitcoin-centric model in 2020 and saw its stock price explode. ReserveOne follows the same model but throws more firepower from the top.
ReserveOne added crypto insiders and former Trump officials.
Jaime Leverton previously ran crypto mining company Hut 8 and is the CEO of ReserveOne. Jaime stated that the company's senior team stands out due to its strong ties to funding, regulation, and cryptocurrency. She told Reuters, 'Our management team and expected board bring a truly unique pedigree and diversity of background between Wall Street, regulation, and cryptocurrency.'
Sebastian Bea previously held senior positions at Blackrock and Coinbase Asset Management, and he will take on the roles of President and Lead Investment Strategy. The board will be chaired by Reeve Collins, co-founder of the largest Stablecoin company, Tether. It will also include Chinh Chu, who previously worked at Blackstone, and former U.S. Secretary of Commerce Wilbur Ross under President Donald Trump. Jaime stated that Wilbur was initially skeptical about cryptocurrency, but 'over the past few months, he has indeed opened up to this space.'
ReserveOne stated that it will not only hold cryptocurrencies but also make them work normally. The company plans to lend assets and raise capital to generate regular income. This institutional model has become quite common in cryptocurrency, but ReserveOne believes that being a publicly listed company makes it more credible to large investors.
Supporting this entire deal are two prominent crypto companies, Kraken and Blockchain.com, with combined equity and convertible debt of up to $750 million. The blank check structure provides the reserves with a shortcut to the public market, bypassing the longer traditional IPO route.
Blank check companies like M3-Brigade are first raising funds and then looking for private companies to merge with as shell companies. After the deal is completed, the private company will be publicly listed. This is how the reserves will land on Nasdaq.