The new cryptocurrency holding company ReserveOne backed by major digital asset players will go public through a merger with M3-Brigade Acquisition V Corp to raise more than $1 billion. ReserveOne will access traditional investor markets through Nasdaq listing after following the same approach as MicroStrategy did with bitcoin.
The company will oversee assets consisting of bitcoin and ethereum and solana. The leadership team of the company includes Jaime Leverton who serves as CEO and Sebastian Bea who serves as president after working at BlackRock and Coinbase. The board will be led by Tether co-founder Reeve Collins while former U.S. Commerce Secretary Wilbur Ross joins the board.
The crypto companies Blockchain.com and Kraken support this deal by investing up to $750 million through equity and convertible debt. The deal occurs at a time when digital assets are being wrapped into equity structures because regulatory clarity about crypto ETFs continues to improve.
The special purpose acquisition companies (SPACs) conduct IPOs to gather capital before uniting with private businesses. The ReserveOne transaction demonstrates an increasing trend to move crypto investment vehicles into public markets which connects institutional finance with digital assets.
The blank-check firm experienced a 4% decline in premarket share prices on Tuesday despite its prominent investor lineup.
