Prime Blockchain is reportedly in talks to go public via a special purpose acquisition company (SPAC) merger with 10X Capital Venture Acquisition II (NASDAQ:VCXA).
Let’s jump into that news below!
- Starting off, Prime Blockchain is a crypto mining company that wants to compete with other publicly-traded competitors.
- Reports claim that the SPAC values the company at $1.5 billion.
- They also state that the SPAC will raise $150 million through a private investment in public equity (PIPE) as part of the merger.
- Prime Blockchain has the leadership needed to make its SPAC merger a success.
- That includes Gaurav Budhrani recently joining the company as its CEO.
- Budhrani is a former Goldman Sachs vice president that was heading its crypto investment banking coverage.
- It’s worth noting that 10X Capital Venture Acquisition Corp. II is still new to the public market.
- The SPAC only went public back in August.
- That saw it join the public market via a $200 million initial public offering (IPO)
- Of course, there are dangers that come with investing in a SPAC company.
- Not only could the SPAC merger go south and not come to fruition, but manipulation is a real fear.
- Meme stock traders have been targeting SPACs lately for their pump and dump schemes.
- That makes sense as SPACs and company’s that go public through them have relatively low entry points.
- That holds true today with some 420,000 shares of VCXA stock on the move today.
- That’s quite the jump from its daily average trading volume of 74,000 shares.
VCXA stock was up 8.7% as of Thursday morning.
Investors looking for more hot stock market news are in luck!
We’ve got them covered with all the latest stock news traders need to know about today. That includes Sono Motors (NASDAQ:SEV) stock jumping after its IPO, Clover Health (NASDAQ:CLOV) shares taking a beating, as well as this morning’s biggest pre-market stock movers. You can find all of that at the links below!
More Stock Market News for Thursday
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.