Crypto company Abra to go public in blank-check merger

Industry:    1 day ago

Crypto wealth management platform Abra plans to go public through a merger with blank-check ​firm New Providence Acquisition Corp III, amid ‌renewed investor interest in digital asset companies, Abra said on Monday.

After the transaction closes, the combined company will operate as ​Abra Financial Holdings, Inc., and anticipates listing ​on the Nasdaq exchange.

Here are some details:

  • The transaction ⁠is based on a $750 million pre-money equity value ​of Abra
  • Existing Abra investors, including Pantera Capital and Adams ​Street, will roll 100% of their interests into the combined company
  • “This is just the next logical step for us,” said ​Bill Barhydt, founder and CEO of Abra, in ​an interview. “We believe that we’re headed for really big things, big ‌growth ⁠in the coming years.”
  • Abra offers crypto custody, trading and lending for registered investment advisers, private clients, family offices and hedge funds, and is itself a registered ​investment adviser
  • Abra ​agreed to ⁠a settlement in 2024 with the U.S. Securities and Exchange Commission over allegations ​that the company’s lending product Abra Earn — ​which ⁠has since been wound down — should have been registered as a security
  • Also in 2024, Abra settled with 25 ⁠state ​financial regulators after the states found ​that Abra operated in the jurisdictions without obtaining required licenses
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