Weekly Summary: Focus on Digital Asset Treasuries as ReserveOne Eyes $1B Raise in SPAC IPO and Sequans Raises $384M
In this edition, digital asset treasuries take centre stage as ReserveOne targets $1 billion in funding to establish a crypto treasury anchored with Bitcoin, and Sequans raises $384M to buy BTC.
🔊Bitcoin Rush Sparks Rally to New All-Time Highs
The bitcoin price this week spiked to hit a new all-time high of $118,909, amid increased demand driven by a rising number of companies from the mainstream that want to establish strategic digital asset portfolios.
Publicly listed companies are now looking to leverage their balance sheets with a digital asset treasury, with a majority anchoring their portfolios with Bitcoin.
That is exactly what ReserveOne, which is going public via a SPAC (special purpose acquisition company) merger with Nasdaq-listed M3-Brigade Acquisition V Corp. (NASDAQ: MBAVU), is doing.
Earlier this week, ReserveOne, which is led by the former CEO Jaime Leverton, the former CEO of Hut 8, said it plans to raise $1 billion from the merger, which will go towards establishing a digital asset portfolio anchored with Bitcoin.
ReserveOne isn’t the only company unveiling its plans for the BTC-acnhored crypto treasury this week. Another publicly traded company, Sequans Communications (NYSE: SQNS), said it raised $384 million, which will go towards establishing a Bitcoin treasury.
But not all companies are looking at BTC to leverage their balance sheets. For instance, BIT Mining is planning to sell its entire crypto holdings and buy SOL, as the crypto mining company pivots to a Solana-focused strategy, while Upexi, which launched its strategic SOL portfolio in April, is raising $200 million to revamp its treasury.
ReserveOne Targets $1B Raise in SPAC IPO for Digital Asset Treasury Anchored with Bitcoin
The company said it has entered into a definitive business combination agreement with M3-Brigade Acquisition V Corp.
ReserveOne aims to hold and manage a diverse basket of cryptocurrencies anchored with Bitcoin and including Ethereum, Solana, and others.
It may also introduce yield generation through institutional staking and lending.
The company is targeting to generate more than $1 billion in gross proceeds from the SPAC, including $297.7 million of capital held in M3-Brigade’s trust account.
Jaime Leverton, CEO of ReserveOne, said in a statement: “By moving towards a public listing, we’re reinforcing our commitment to responsible innovation, financial inclusion, and the development of a more resilient, transparent market for digital assets. Our disciplined, yield-focused strategy is designed to set a new standard for regulated crypto investing.”
NYSE-Listed Sequans Secures $384M Debt and Equity Placement to Buy Bitcoin
The offering included the sale of 139,444,614 American Depositary Shares (ADSs), contributing $195 million to the gross proceeds and the issuance of $189 million in debt.
Each ADS represented 10 ordinary shares at a nominal value of €0.01 per share of the Company and common warrants to purchase up to 20,916,680 ADSs within 90 days of the closing of the offer.
The debt was in the form of secured convertible debentures due July 7, 2028, at an original issue discount of 4% to purchase 20,249,997 ADSs, also exercisable within 90 days.
Georges Karam, CEO of Sequans, said in a statement: “We believe bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders. Our intention is to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds.”
Cryptocurrency Miner BIT Mining Eyes $300M Funding for SOL Treasury
The company joins a growing list of both crypto-native and non-crypto-native companies looking to establish digital asset treasuries, following the example of Michael Saylor’s MicroStrategy.
The company plans to raise between $200 million and $300 million to buy SOL in phases, based on market conditions and capital availability.
The company plans to kick off the new strategy by converting all its crypto holdings into SOL.
The company also plans to become a node validator on the Solana ecosystem, to help maintain network decentralisation and security while earning on-chain staking rewards.
BIT Mining CEO Xianfeng Yang said. “This strategic move reflects our commitment to staying adaptive and responsive in an ever-evolving industry. With our strong execution capabilities and long-term vision, we are confident in our ability to accelerate sustainable growth and deliver lasting value to our shareholders.”
Upexi Announces $200M Placement to Invest in Its Solana-Focused Crypto Treasury
The offer includes both the sale and purchase of shares of common stock of the company for $50 million and a convertible note for $150 million.
The consumer goods company sold 12,457,186 shares, with investors paying $4.00 per share and $4.94 per share for management’s participation.
Big Brain Capital led the convertible note sale, with investors paying a fixed conversion rate of $4.25 per share in exchange for locked SOL, and earning 2% quarterly interest.
“The Company expects to use a portion of the proceeds from the Equity Offering to fund the Company’s existing business operations and for working capital and general corporate purposes, and the balance of the net proceeds shall be used to fund the Company’s Solana treasury strategy,” Upexi wrote in the release.
💵Crypto Fundraising News
Ego Death Capital Closes $100M Fund II for Bitcoin-Based Revenue-Earning Projects
Ego General Partner Lyn Alden said the fund will invest in businesses that view Bitcoin not as a trade to bet on, but as an infrastructure to build upon.
The Ego Death Capital Fund II will look to lead investments in Series A rounds with $3 million to $8 million per project, building on Bitcoin.
The fund will focus on businesses with earnings between $1 million and $3 million, whose growth has been stunted by a lack of capital rather than demand.
The firm has already invested in Bitcoin-based self-custody service provider Relai and the exchange platform Roxom.
Paradigm Leads $50M Funding for Stablecoin Issuer and Infrastructure Provider Agora
The fundraising follows Agora’s $12 million seed round announced last year, which was led by Dragonly Capital.
Agora offers a white label stablecoin service, helping other companies launch self-branded versions of its AUSD stablecoin.
The company plans to use the fresh capital to build up the AUSD stablecoin ahead of a potential regulatory breakthrough for the sector in the U.S.
Kuru Labs Bags $11.5M Seed Round to Build Hybrid DEX Platform on Monad
Paradigm led the round with participation from 0xDesigner, Viktor Bunin, Zagabond, Tristan Yver, Kevin Pang, Will Price, Alex Watts, Jordan Hagan, 3nes, Shreyas Hariharan, Auri, and Joe Takayama.
The company plans to use the funds to accelerate the development of its hybrid decentralised exchange platform that blends centralised limit ordering with automated market making.
📈On-Chain Analysis
Perpetual DEX EdgeX Hits $86M in TVL After 700% Monthly Gain
EdgeX, a decentralised perpetual trading platform, saw its total value locked (TVL) nearly triple in the past week to a record $86.4 million, contributing to a 700% gain over the month.
The surge is attributed to deposits of Ethereum-based tokens, with the chain making up 99% of the TVL, followed by Arbitrum and BSC.
Traders deposit USDT and AETHUSDT, representing a yield-bearing token that Aave users receive after depositing USDT into the Aave V3 app on Ethereum.
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