Bitcoin News Today: Parataxis Merges With SPAC to Raise $640M for Public Bitcoin Treasury Strategy

Parataxis Holdings, a digital asset management firm, has announced a merger with SilverBox Corp IV, a special purpose acquisition company (SPAC), in a deal designed to take the company public on the New York Stock Exchange (NYSE) under the ticker symbol PRTX. The transaction aims to raise up to $640 million to establish a publicly traded Bitcoin treasury strategy. The new entity will be named Parataxis Holdings Inc. and is expected to focus on the U.S. and South Korean markets [1].

Under the terms of the merger, Parataxis will receive up to $240 million, subject to redemptions by shareholders of the SPAC. Of this amount, $31 million will be used immediately to purchase Bitcoin. Additionally, Parataxis has secured a share purchase agreement that allows it to issue up to $400 million in equity, creating the potential for total proceeds of $640 million. This line of credit, known as an equity line of credit (ELOC), gives the firm flexibility to scale its Bitcoin treasury strategy quickly and efficiently [2].

The combined entity will be valued at approximately $400 million if each share is priced at $10. However, if the full $400 million in equity is drawn, the total equity value could rise to $800 million—assuming no redemptions and no additional funding [6]. Edward Chin, Founder and CEO of Parataxis, emphasized that the merger marks a key step in the firm’s vision to build a public company that offers differentiated exposure to Bitcoin through institutional-grade investment strategies [4].

The move aligns with the broader trend of institutional adoption of Bitcoin, as seen in the growing number of Bitcoin treasury companies. As of July, these firms had accumulated approximately 3.64 million BTC, with a combined value of $415.34 billion. Companies like Michael Saylor’s MicroStrategy, which has amassed 628,791 BTC, and Bitcoin Standard Treasury, with 30,021 BTC, have led the trend. Parataxis now joins this growing list of firms leveraging Bitcoin as a strategic asset [3].

The SPAC merger highlights the increasing role of alternative public listing vehicles in the crypto space. Joe Reece, Founding Partner of SilverBox Corp IV, praised Parataxis for developing a scalable digital asset platform. He noted that the partnership will allow the firm to expand its presence in both the U.S. and South Korean markets [5].

Parataxis previously launched its Bitcoin treasury strategy in South Korea through Parataxis Korea, which has seen significant growth since its inception. The company also has an agreement with Bridge Biotherapeutics, contributing to its strategic expansion into emerging markets.

The securities involved in the merger have not been registered under the Securities Act of 1933 and will require SEC approval before being issued in the U.S. The deal underscores the ongoing convergence of institutional finance and digital assets, with SPACs serving as a vehicle for crypto-native firms to access public market capital. As the industry evolves, Parataxis is positioned to capitalize on growing demand for Bitcoin-backed investment vehicles.

Source:

[1] Theblock.co (https://www.theblock.co/post/365889/parataxis-merges-with-spac-with-aim-to-form-640-million-bitcoin-treasury-company)

[2] TradingView (https://www.tradingview.com/news/cryptonews:5f2940b2e094b:0-crypto-asset-manager-parataxis-to-go-public-in-spac-merger-640m-btc-treasury-in-focus/)

[6] Blockonomi (https://blockonomi.com/parataxis-merges-with-spac-aims-to-stack-640m-in-bitcoin/)