Bitcoin Depot, founded in 2016, is a bitcoin ATM operator in North America.
Fintech Bitcoin Depot plans to list in the United States by merging with blank check company GSR II Meteora Acquisition Corp in an $885 million deal, the companies said on Thursday.
The transaction will raise up to $321 million in cash held in GSRM’s trust account and will be used to support Bitcoin Depot’s working capital, complete acquisitions and enhance its platform and suite of products.
Assuming no redemptions, the combined company would be valued at $755 million, including debt, which has an equity value of $885 million and up to $170 million in cash proceeds from the deal, according to a statement.
Bitcoin Depot, founded in 2016, is a bitcoin ATM operator in North America that enables users to convert their cash to bitcoin, ethereum and litecoin at over 7,000 kiosk locations in 47 US states and nine Canadian provinces.
Special purpose acquisition company GSRM, which raised $316 million in an initial public offering in March this year, is pushing the deal at a time when few are.
SPAC is a listed firm that has no business operations but has a pool of capital which it uses to merge with a private company. The deal then takes the private company public.
High rates of shareholder redemption and regulatory concerns have hindered bargaining in a sector that has taken Wall Street by storm over the past two years to companies seeking to go public through the SPAC route.
Companies that recently canceled their agreements to go public through SPAC include telecommunications services firm Syniverse Technologies, 3D printing firm Essentium Inc and travel technology platform HotelPlanner.
The deal, expected to close by the first quarter of next year, is being advised by Oppenheimer & Company Inc. The combined company will be listed on Nasdaq under the symbol ‘BTM’.
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