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Sweden leads Europe’s first blockchain-centric, SPAC

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  • HODL SPAC Europe intends to be the first blockchain-centric SPAC to go public in Europe, with the objective of purchasing at least one firm in the blockchain industry for up to $55 million.
  • There will be a  change with the IPO of the recently created Swedish corporation HODL SPAC Europe AB, which will trade under the symbol “HODL.”
  • The firm will surely go public on the Swedish Spotlight securities market on January 21st after raising $3.2 million in cash.

A Special Purpose Acquisition Business (SPAC) is a company that has no commercial activities and is founded only to obtain cash via an initial public offering (IPO) for the purpose of acquiring or merging with another company.

SPACs have been present for decades, but have recently seen a Cambrian explosion. In the United States in 2020, 247 SPACs were created, with $80 billion invested, and a record $96 billion was raised from 295 newly formed SPACs in the first quarter of 2021. In comparison, there were just two SPACs that hit the market.

Simply defined, SPACs are a shortcut to IPOs for those who are impatient. SPAC IPOs are often faster, simpler, and less expensive than the traditional route, making it a tempting path ahead for crypto- and blockchain enterprises. Furthermore, crypto firms represent a novel and potentially attractive investment possibility for SPAC investors.

Lessons learned from Coinbase’s protracted IPO

Several top-tier crypto businesses, including eToro, Bakkt, and possibly CompoSecure, did or want to go public via SPACs in 2014. Many people have learned a lesson from Coinbase’s lengthy IPO procedure, which lasted more than 6 months.

However, on the European side of the Atlantic, we have not seen as many SPACs in general, and certainly none with a specific focus on the crypto industry. This will change with the IPO of the recently created Swedish corporation HODL SPAC Europe Abdominal, which will trade under the symbol “HODL.”

According to the corporate announcement, assuming the IPO is fully subscribed, the firm will surely go public on the Swedish Spotlight securities market on January 21st after raising $3.2 million in cash.

A golden opportunity for women to break into this industry

HODL SPAC’s primary aim is to buy at least one blockchain company with a venture value of roughly SEK 500 million (approximately $55 million) within 24 months of its first public offering.

“The fact that we use HODL as our ticker says all about our long-term commitment to this industry and also the business opportunities we seek.” “WAGMI,” Vahid Toosi, CEO of HODL SPAC, refers to the famous cryptocurrency meme “We Are Going to Make It.”

According to HODL SPAC chairperson Michaela Berglund, there are several opportunities for women to enter the cryptocurrency industry.

Steve Anderrson
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