KRAKacquisition Corp, a special purpose acquisition company (SPAC) linked to crypto exchange Kraken, raised $345 million in the completion of its upsized IPO this week.
The "blank check" firm is intended to merge or enter into a business combination with an existing entity, but said it has not yet had any “substantive discussions” with a potential target.
To that end, KRAKacquisition Corp. aims to focus on companies developing infrastructure, with an eye towards payments networks, tokenization platforms, compliance solutions, or other essential services.
“While we retain flexibility to pursue opportunities in any sector, we believe the most transformative opportunities lie in the convergence of DeFi and TradFi,” it wrote.
KRAKacquisition Corp. is sponsored by NCTK Sponsor LLC, a Delaware LLC formed between Kraken, Tribe Capital, and Natural Capital solely to invest in the blank check firm. According to its recent SEC filing, the firm intends to gain assistance from Kraken’s “deep ecosystem access, enhanced diligence, proven operating experience, and regulatory expertise.”
“We believe Kraken's participation as a partner in our sponsor provides multiple distinct advantages in identifying and executing a successful business combination,” the filing reads. “Although Kraken will not be contractually obligated to do so, we expect that Kraken's participation as a partner in our sponsor will incentivize it to assist us, without additional compensation.”
Since it began trading, shares have not budged much from the IPO price, recently changing hands around $10.15—a gain of 1.5%.
