Bitcoin News Today: Bitcoin Execs Arm SPAC to Build the Next Financial Infrastructure Layer

A new special purpose acquisition company (SPAC) focused on the Bitcoin infrastructure sector has raised $200 million through an initial public offering on the Nasdaq. The firm, named Bitcoin Infrastructure Acquisition Corp Ltd, is incorporated in the Cayman Islands and will trade under the ticker "BIXIU." The offering includes 20 million units priced at $10 each, with each unit consisting of one common share and one-half of a warrant exercisable at $11.50 [1]. The company’s stated objective is to merge with an existing firm operating in digital assets, Web3 technologies, or blockchain-based financial infrastructure within the next 24 months [2].

The SPAC is led by Ryan Gentry, a former business development lead at Lightning Labs, the firm behind Bitcoin’s layer-2 Lightning Network. Prior to that, Gentry worked as an analyst at Multicoin Capital, a venture firm with a history of backing crypto-native projects. Supporting Gentry is Jim DeAngelis, the SPAC’s chief financial officer, who previously served at Kroll, a risk advisory firm involved in major crypto bankruptcy cases such as FTX and BlockFi. Vikas Mittal, the chief investment officer of Meteora Capital and a sponsor of the IPO, is also a key figure in the SPAC’s leadership. Mittal is additionally the chair of another SPAC, CSLM Digital Asset Acquisition Corp III, which recently closed a $230 million offering [3].

The SPAC’s board of directors includes several high-profile figures from the crypto industry. Parker White, a former engineering director at Kraken and now an executive at DeFi Development Corporation, serves as chair. The board also includes Matt Lohstroh, co-founder of Bitcoin miner Giga Energy, and Tyler Evans, a co-founder of Bitcoin Magazine publisher BTC Inc and the investment firm UTXO Management. These appointments underscore the SPAC’s commitment to leveraging deep expertise in the Bitcoin and broader blockchain ecosystems [4].

The Bitcoin Infrastructure Acquisition SPAC is part of a broader trend of crypto-related SPACs raising significant capital. Over the past two days, two SPACs targeting the crypto sector raised a combined $575 million. In addition to the $200 million raised by Bitcoin Infrastructure, CSLM Digital Asset Acquisition Corp III and M3-Brigade Acquisition VI Corp raised $230 million and $345 million, respectively [1]. This surge reflects growing investor interest in bringing blockchain and digital asset companies into the public market, with a particular focus on infrastructure and financial services.

The SPAC’s emphasis on Bitcoin infrastructure is notable, as it aligns with the increasing demand for scalable and secure solutions in the blockchain and decentralized finance (DeFi) sectors. The firm has identified potential areas of interest, including digital wallets, custody platforms, exchanges, lending protocols, and tokenized financial instruments. It also expressed interest in supporting real-world applications of blockchain technology, such as cross-border payments and decentralized financial systems [2]. By targeting these sectors, the SPAC aims to capitalize on the ongoing digitization of financial infrastructure and the maturation of the crypto industry.

Investors in the SPAC will have the option to redeem their shares if no acquisition is made within 24 months of the IPO. The SPAC’s prospectus outlines mechanisms to ensure investor protection and operational flexibility, allowing management to pursue a merger with a suitable target when conditions are favorable. The structure highlights a strategic approach to deploying capital in a rapidly evolving market, where the right infrastructure can facilitate broader adoption of Bitcoin and related technologies [4].

Source: [1] Crypto Executives Plan $200M Bitcoin Infrastructure IPO (https://cointelegraph.com/news/crypto-execs-file-200m-bitcoin-infrastructure-acquisition-spac) [2] Crypto Execs Launch $200M SPAC Bid with Nasdaq Listing (https://finance.yahoo.com/news/crypto-execs-launch-200m-spac-063610380.html) [3] Digital asset-focused SPAC Bitcoin Infrastructure Acquisition (https://www.renaissancecapital.com/IPO-Center/News/113069/Digital-asset-focused-SPAC-Bitcoin-Infrastructure-Acquisition-files-for-a-$) [4] Bitcoin Infrastructure SPAC Raises $200M (https://blockonomi.com/bitcoin-infrastructure-spac-raises-200m-backed-by-crypto-leadership/)