According to reports, popular cryptocurrency ATM provider Bitcoin Depot intends to partner with SPAC GSR II Meteora Acquisition Corp. to go public.
A public corporation called a special-purpose acquisition company (SPAC) is formed to merge with or purchase an existing entity. SPACs raise money from investors through initial public offerings (IPOs), but they don’t operate as a business, so investors can withdraw their funds before a merger or acquisition is finalized. SPAC makes it easier and more affordable for private companies to go public than traditional IPOs.
According to a Wall Street Journal article, the contract between Bitcoin Depot and GSR II Meteora SPAC is valued at $885 million. Bitcoin Depot will take the position of the shell business in the stock market if the deal is approved and closed.
According to the article, GSR II Meteor raised roughly $320 million, money that the ATM operator might utilize to grow its business. However, the corporation will have less money if investors decide to pay out their investments.
Over 7,000 kiosks operated by Bitcoin Depot, which was formed in 2016, are positioned at significant retailers like Circle K in the United States and Canada.
The founder and CEO of Bitcoin Depot, Brandon Mintz, told the Wall Street Journal that the business had done well despite the recent meltdown that destroyed more than $1 trillion in value from the cryptocurrency market.
According to the CEO, the company sees more and more applications for cryptocurrencies in cross-border transfers and payments. With the SPAC agreement, the operator of the crypto ATM aims to investigate various use cases.
If the deal is successful, Bitcoin Depot won’t be the first cryptocurrency company to IPO through SPAC. Through SPAC agreements, businesses like the cryptocurrency exchange Bakkt and the bitcoin miner Cipher Mining have been listed on stock exchanges.
Some crypto SPAC arrangements are currently in peril since the companies involved have prolonged the termination dates for the deals, even though more cryptocurrency startups like Roxe are planning to go public using the same way.
