Introduction to KRAKacquisition Corp.
A new special purpose acquisition company (SPAC) associated with cryptocurrency exchange Kraken has officially submitted its intention to go public on January 12, as noted in a recent registration to the U.S. financial regulators. Known as KRAKacquisition Corp., the SPAC is looking to raise $250 million by offering 25 million units on the Nasdaq Global Market. Each unit will consist of a Class A ordinary share and a quarter of a redeemable warrant, which aligns with common structures for SPAC investments.
Investment Focus
The purpose of this SPAC is to find acquisition opportunities within the cryptocurrency and digital asset landscape. Specifically, it aims to invest in sectors such as:
- Payment networks
- Tokenization technologies
- Blockchain infrastructure
- Various financial services related to these areas
Sponsorship and Management
Sponsoring the SPAC are Kraken’s affiliates, Tribe Capital and Natural Capital, and it will be guided by Kraken’s head of Strategic Initiatives, Sahil Gupta, who will take on the role of chief financial officer for the SPAC.
Distinction from Kraken’s Direct Listing
It’s important to note that this SPAC filing is distinct from Kraken’s ongoing plans for a direct public listing. In November of last year, Kraken submitted a confidential draft S-1 registration statement to the Securities and Exchange Commission (SEC) concerning its direct listing of common stock. Currently, this registration is under review and has not yet been approved by the SEC, which also means that securities associated with the offering cannot be sold until the approval process concludes.
Investor Options
For this IPO, Santander has been designated as the sole book-running manager. Investors participating in the SPAC will retain the option to redeem their shares should they disagree with any merger that the company may pursue, following customary terms typically found in SPAC agreements.
