Kraken-backed SPAC pursues M&A of up to $10bn

Doohyun Hwang

Summary

Kraken-backed SPAC KRAKacquisition said it has started pursuing acquisitions of promising companies across the digital-asset ecosystem, including stablecoins, tokenization and DeFi.
KRAKacquisition said it is seeking acquisition targets valued at up to $10bn and raised $345m in a Nasdaq IPO in January.
KRAKacquisition must complete an M&A deal within the next two years, and said companies valued at around $2bn could also be targets while it also keeps an eye on the payments sector.

Forecast Trend Report by Period

KRAKacquisition, a special purpose acquisition company (SPAC) sponsored by an affiliate of crypto exchange Kraken, has begun a full-scale search for acquisition targets. It is expected to serve as a catalyst for taking public promising companies across the digital-asset ecosystem, including stablecoins, tokenization and decentralized finance (DeFi).

According to Decrypt on the 13th (local time), Ravi Tanuku, CEO and director of KRAKacquisition, said, “We are looking for acquisition targets worth up to $10bn.”

He noted that while no specific type of target has been set, “interest in stablecoin and asset-tokenization companies on Wall Street peaked last year,” adding that “it is a very positive signal that the market has started to recognize these changes and pay for value.”

A SPAC is a shell company formed for the purpose of acquiring a high-quality private company and taking it public through a merger. KRAKacquisition listed on Nasdaq in January and completed a $345m initial public offering (IPO). As a result, it must find a company to merge with within the next two years.

Tanuku said the $10bn figure is a rough benchmark, adding that the value of a merger target could be around $2bn. He also said it is no longer easy for companies with that level of market capitalization to list on their own, and added that KRAKacquisition is watching not only crypto assets but also stablecoins, DeFi and payments broadly.