Crypto 1 Acquisition to Liquidate 12 Months After $230M IPO

Crypto 1 Acquisition Corp. plans to dissolve and liquidate by Dec. 19.

The special purpose acquisition company (SPAC) has been primarily focused on mergers with cryptocurrency and FinTech companies, according to a Friday (Dec. 9) press release.

“The company anticipates that the company cannot consummate an initial business combination within the time period required by its amended and restated memorandum and articles of association,” Crypto 1 Acquisition said in the release. “Accordingly, the company intends to dissolve and liquidate in accordance with the provisions of its amended and restated memorandum and articles of association.”

The company said in the press release that it would provide a per-share redemption price of about $10.14 for all of the outstanding Class A common stock shares that were included in its initial public offering (IPO).

The announcement comes a year after Crypto 1 Acquisition closed its $230 million IPO. The company began trading on the Nasdaq Global Market on Dec. 7, 2021, according to a Dec. 10, 2021, press release.

“We intend to focus on the acquisition of a significant cryptocurrency exchange, payment system and/or related financial services company, including but not limited to wallets, lending and decentralized finance (‘DeFi’) in emerging crypto markets such as Asia, Latin America and Europe,” said a page on the firm’s website.

The Financial Times reported Sept. 4 that investors who put funds into blank check companies would likely see a liquidity boost of more than $75 billion in the next six months as SPACs that went public during the listings boom would probably have to return their cash.

The potential surge in liquidations would eliminate one of the final remnants of one of the biggest market frenzies of the past few years. Per the report, it’s going to help investors get back the cash they need after losses ravaged them during this year’s market downturn.