KRAKacquisition Corp., a special purpose acquisition company (SPAC) sponsored by an affiliate of the crypto exchange Kraken, is actively seeking an acquisition target valued up to $10 billion. The blank-check firm, which completed a $345 million public offering in January, aims to take a small- or mid-cap company in the crypto, stablecoin, or DeFi space public. This search coincides with Kraken’s own confidential filing for a potential public offering later this year.
KRAKacquisition Corp. is searching for a company that could be worth as much as $10 billion, according to director Ravi Tanuku. The search follows the blank-check firm’s completion of a $345 million public offering in January, which started a two-year countdown to identify a target.
Tanuku noted that the $10 billion figure is an approximation, with a potential target value possibly closer to $2 billion. He stated that the market is paying up for firms associated with stablecoins and tokenization, adding, “In our mind, that’s a good signal to be aware of.”
The SPAC is focused on helping smaller companies related to crypto, stablecoins, DeFi, and payments explore public markets. Tanuku explained, “It’s not easy to take a company in that smaller market cap range public anymore.”
This strategic move by the Kraken-affiliated SPAC unfolds as the crypto exchange itself contemplates a public offering. Kraken confidentially filed a registration statement with the SEC in November after an $800 million fundraising round that valued it at $20 billion.
Tanuku described KRAKacquisition as a strategic investment tool for Kraken, aiming to align another firm with the exchange economically. The firm’s registration statement argues that inflation has bolstered hard asset hedges like Bitcoin over time.
