ReserveOne to Go Public via Merger with M3-Brigade V Corp.
LONDON – October 15, 2024
Digital asset management firm ReserveOne announced Tuesday it will merge with M3-Brigade Acquisition V Corp. (M3-Brigade V) in a deal projected to raise over $1 billion in gross proceeds.
Financed through the Special Purpose Acquisition Company (SPAC) merger, the funds will be utilized to build upon ReserveOne’s strategy focused on accumulating substantial reserves of leading cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Solana (SOL).
Commenting on the move, ReserveOne CEO Jaime Leverton stated, “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.”
Leverton brings substantial industry experience to her new role, having previously served as CEO of Bitcoin mining company Hut 8 for three years and currently holding a position on Riot Platforms’ board of directors.
M3-Brigade V is a joint venture between M3 Partners and Brigade Capital Management, entities experienced in facilitating SPAC transactions. They previously took Greenfire Resources and Infrastructure and Energy Alternatives public.
Upon completion, scheduled for the fourth quarter of 2025, ReserveOne will be listed on M3-Brigade V’s exchange (Nasdaq) and trade under ticker symbols RONE and RONEW.
Broader Trend: Crypto Reserve Companies Gain Traction
ReserveOne’s path to an initial public offering (IPO) via an SPAC follows a growing trend in the financial sector, where companies offering indirect exposure to digital assets are seeking public backing.
Other players employing similar crypto reserve models who have garnered attention recently include Michael Saylor’s Core Scientific, alongside firms like Metaplanet, Semler Scientific, SOL Strategies, and DeFi Development Corp.
These cryptocurrency-backed investment trusts often attract interest by providing avenues for portfolio diversification into the asset class without necessitating direct ownership of the often-volatile coins. Nevertheless, critics caution that this indirect representation comes with its own set of hurdles.
“While crypto reserves offer easier access, they can also introduce amplified volatility or performance drag compared to straightforward crypto investments, posing a consideration for retail investors looking to participate in the digital assets space,” noted industry analysts.
