Blackstone, Tether Executives Raise $10 Billion for Crypto Fund via SPAC

A former executive from Blackstone Group and the co-founder of Tether Holdings SA are collaborating to raise $10 billion for a publicly listed cryptocurrency fund. This fund aims to build a diversified portfolio of digital assets, including Bitcoin, Ethereum, and Solana. The initiative is being pursued through a special purpose acquisition company (SPAC), M3-Brigade Acquisition V Corp.

The fund's strategy involves allocating resources across multiple cryptocurrencies to mitigate risks associated with the volatile nature of the digital asset market. By diversifying the portfolio, the fund seeks to provide investors with a more stable and potentially lucrative investment opportunity. The involvement of high-profile figures from both the traditional finance and cryptocurrency sectors adds credibility to the project, potentially attracting significant institutional investment.

The collaboration between a former Blackstone executive and a Tether co-founder highlights the growing intersection between traditional finance and the cryptocurrency industry. This partnership leverages the expertise of both parties to navigate the complexities of the digital asset market and create a robust investment vehicle. The use of a SPAC to raise funds is a strategic move, as it allows the fund to go public more quickly and with less regulatory scrutiny compared to a traditional initial public offering (IPO).

The fund's focus on multiple cryptocurrencies reflects a broader trend in the industry towards diversification. By spreading investments across different digital assets, the fund aims to reduce the impact of price fluctuations in any single cryptocurrency. This approach is particularly relevant in the current market, where the prices of cryptocurrencies can be highly volatile.

The $10 billion target for the fund is ambitious but not unprecedented in the cryptocurrency space. The involvement of established figures from the finance and cryptocurrency sectors suggests that the fund has the potential to attract significant investment. The use of a SPAC to raise funds is a strategic move, as it allows the fund to go public more quickly and with less regulatory scrutiny compared to a traditional IPO.

According to the information, the fund will be led by former Blackstone private equity co-head Chinh Chu and Tether co-founder Reeve Collins. The fund is also expected to have notable figures such as former U.S. Commerce Secretary Wilbur Ross and Binance board chairman Gabriel Abed as vice chairmen, with Jamie Leaverton, former CEO of Hut 8 Mining, serving as the CEO. The fund is also planning to rename itself.

The fund's strategy contrasts with the "Bitcoin maximalism" approach advocated by companies like Japan's Metaplanet and MicroStrategy, which have amassed billions in Bitcoin. Other institutions like SharpLink Gaming focus solely on Ethereum. The fund's diversification strategy aims to provide a more balanced investment approach, reducing the risks associated with the volatility of individual cryptocurrencies.

The establishment of this fund comes at a time when the U.S. government has shown increased interest in digital assets. In March, the U.S. President signed an executive order directing the government to build Bitcoin reserves and establish an independent multi-cryptocurrency inventory. This move underscores the growing recognition of digital assets as a significant part of the financial landscape.

Reeve Collins, who previously launched the precursor to Tether USDT and served as its CEO in the early 2010s, is currently the chairman of the yield-bearing stablecoin protocol Pi. Chinh Chu, who left Blackstone in 2015, was the longest-serving dealmaker at the firm and has led several SPAC projects, including the acquisitions of Getty Images and Utz brands.