Another SPAC on the tape. This time $300m for Republic targeting fintech / crypto / software
Now had a number in recent weeks: Digital Asset, Pomp, CEPII + Republic. Trend is teeing up a wave of crypto business that could live in the public markets. Challenge will be bridging pricing expectations + funding to make the deals actually happen
Hard to see this heading back to '21 levels ($160b in SPAC capital raised), but public markets continue to be receptive, so anticipate more to follow suit
(OO #330)
Hot speculative take: Circle's IPO fails but they still go public when they're acquired by the DAAC SPAC:
- Circle IPO roadshow not going well and looking unlikely that it gets done or priced at $5b
- Digital Asset Acquisition corp is a fresh SPAC led by (drumroll) members of the team that previously attempted to acquire Circle in 2021 (see Concord Acquisition Corp)
- DAAC's sole purpose is to acquire a crypto company and it just priced last night + started trading today
- SPAC board now includes individuals w/ heavy crypto regulatory experience (BA, Aave, Polygon, Jito)
- Acquisition is win/win for both parties: solves Circle's desire for liquidity while giving sponsors good economics + a tailwind to ride
- Makes all the fluffy product announcements (i.e. CPN) - which are months away - make sense if a SPAC deal is in motion
TLDR: old team that tried to SPAC Circle might just run it back
(OO #325)
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