Bitcoin Depot, a multi-cryptocurrency ATM operator, has agreed on a deal with a Special Purpose Acquisition Company (SPAC) to take it public. The company’s deal with SPAC GSR II Meteora Acquisition Corp was reported on Thursday according to Wall Street Journal.
The merger will see both entities become Bitcoin Depot Inc. and trade on the NASDAQ with a valuation of $885 million.
According to the reports, GSR II Meteora raised $170 million in cash. This will be used to scale the operator’s growth and expand its operations. The deal is expected to be completed by the first quarter of 2023.
SPAC, also called a blank cheque company, is a publicly-traded company. The company is specifically designed to acquire private firms and take it public without going through the traditional IPOs. It is also known for pooling funds to finance an acquisition.
Founded in 2016, Bitcoin Depot is one of the largest operators in North America. It has over 7,000 kiosks scattered across major stores in the United States and Canada. The operator brings crypto closer to the masses via its convenient process of converting cash into cryptocurrency.
Crypto firms get listed via SPAC merger
Should the deal work, Bitcoin Depot isn’t the first crypto firm to go public using a SPAC merger.
W3BCLOUD, a blockchain data service provider reached a $1.25 billion merger agreement with Social Leverage Acquisition Corp 1 earlier in the month. The agreement will see the combined entity get listed on the New York Stock Exchange (NYSE) through the SPAC route.
While SPAC mergers offer a quicker and cheaper alternative compared to traditional IPOs, some deals have with the rock as parties involved have extended the completion deadline for the deals.
No thanks to the continuous market turbulence, Bullish.com, a cryptocurrency exchange platform, has extended the proposed date for its SPAC merger with Fair Peak Acquisition Corporation from July 8 to December 31. The firm also paid an extension fee of $2.5 million to Fair Peak because the deal is yet to be completed.