Digital asset investment management firm Parataxis is the latest crypto firm announcing it will go public through a special purpose acquisition company (SPAC) merger.
Parataxis said on Wednesday that it had agreed to merge with SilverBox Corp IV, a SPAC sponsored by an affiliate of SilverBox Capital, in a deal that “could provide up to $640 million of gross proceeds” to fund a Bitcoin (BTC) treasury strategy.
Once the deal is complete, the combined company will be named Parataxis Holdings and will seek to trade on the New York Stock Exchange under the symbol “PRTX” with an implied equity value of up to $800 million at $10 per share.
The deal was originally floated in June and includes $240 million from the merger and up to $400 million through an additional equity line of credit, with $31 million immediately raised to purchase Bitcoin.
Expansion into South Korea
Parataxis founder and CEO Edward Chin said the deal means his firm “will be well-capitalized to execute a BTC treasury strategy in the US, enhanced by the yield generation capabilities of an institutional asset manager.”
The company also plans to establish and grow a “successful foothold in South Korea,” offering similar BTC yield strategies to investors.
Related: Korean biotech firm bought by Parataxis for Bitcoin treasury use
They have already established “Parataxis Korea” through an investment in Bridge Biotherapeutics, whose stock price has increased around 4.5 times since the June announcement.
The year of crypto IPOs
The move follows a number of high-profile crypto companies that have gone public either on their own or through SPACs — public companies that acquire or merge with a private business to bring it public.
USDC stablecoin issuer Circle Internet Group had its initial public offering (IPO) in June, and its shares have surged 420% from the IPO price of $31.
Anthony Pompliano’s fintech-focused SPAC, ProCap Acquisition Corp, debuted on the Nasdaq on May 20, and crypto asset manager Grayscale filed for a public listing in July.
Minor gains for SilverBox Corp IV
Shares in SilverBox Corp IV have made minor gains this year, down from an all-time high of $11.20 in June, to post gains of 5% since January.
Most of the company’s gains this year came amid its initial disclosure of taking Parataxis public. It closed Wednesday trading flat at $10.60, seeing a slight 1.7% gain after hours to $10.78.
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