The cryptocurrency industry is experiencing a surge in IPOs, with cryptocurrency trading platform and wallet service provider Blockchain.com recently negotiating a SPAC listing in the United States. Several peer companies have completed or plan to go public this year.
On October 20, media reports cited two informed sources stating that the company has discussed a potential SPAC transaction. One of the sources indicated that Blockchain.com has appointed Cohen &amp; Company Capital Markets as an advisor for the potential SPAC deal. It remains unclear whether the negotiations are still ongoing.
A SPAC (Special Purpose Acquisition Company) is a financial instrument that raises funds through an IPO and acquires a target company within a specified time frame to achieve indirect listing. SPACs are typically initiated by private equity investment professionals, who raise funds through an IPO and then seek suitable target companies for acquisition within 18-24 months, allowing the target company to achieve financing by inheriting the SPAC's public listing status.
As of the time of this article's publication, neither Blockchain.com nor Cohen &amp; Company Capital Markets has commented on this matter.
The potential valuation of Blockchain.com's deal is still unclear, but the company's financing valuations have fluctuated significantly due to market volatility over the years. In March 2021, the company raised $300 million, with a post-money valuation of $5.2 billion. The following year, a new round of financing pushed its valuation up to $14 billion. However, according to Bloomberg, by November 2023, a $110 million financing round valued Blockchain.com at $7 billion.
Blockchain.com joins the ranks of cryptocurrency companies going public intensively this year. Stablecoin issuer Circle went public via IPO in June, CoinDesk's parent company Bullish went public in August, and cryptocurrency exchange Gemini went public in September. According to media reports, competitor Kraken also plans to go public early next year.
In February, reports indicated that Blockchain.com sent positive signals for a potential public listing by appointing two experienced executives. The company hired Justin Evans, who previously worked at Goldman Sachs, as Chief Financial Officer and appointed Mike Wilcox, former CFO of Velocity Global and portfolio manager at Point72, as Chief Operating Officer.
Evans stated at the time:
<blockquote>
The exchange &#34;is taking the necessary steps to become a public company, if market conditions allow.&#34;
</blockquote>
Blockchain.com is also expanding its business into several African countries, including Ghana, Kenya, and South Africa

COHN

According to informed sources, the company has appointed Cohen & Company Capital Markets to provide consulting for a potential SPAC transaction, and it is currently unclear whether negotiations are still ongoing

- The cryptocurrency industry is experiencing a surge in public listings, with Blockchain.com negotiating a potential SPAC deal for a U.S. listing.  
- The company has appointed Cohen & Company Capital Markets as an advisor for this transaction, although the status of negotiations remains unclear.  
- Blockchain.com has seen significant fluctuations in its valuation, with estimates ranging from $5.2 billion in March 2021 to $7 billion in November 2023, as it joins other crypto firms in pursuing public offerings.

Report: Cryptocurrency platform Blockchain.com has been in negotiations to go public through a SPAC