Etoro, an online cryptocurrency and stock brokerage platform, announced that the company went public through a transaction with a special purpose acquisition company called Fintech Acquisition Corp V. The Etoro merger is a $10.4 billion transaction, supported by banking entrepreneurs and Fintech Acquisition Corp V chairman Betsy Cohen (Betsy Cohen).
Etoro completes a special purpose acquisition with a $10.4 billion transaction
The popular cryptocurrency trading platform and stock brokerage service Etoro plans to go public in a merger of 10.4 billion U.S. dollars. The merger was initiated by a company called Fintech Acquisition Corp V, and the investment also came from the Japanese company Softbank and the financial manager’s Vision Fund 2.
The transaction is a special purpose acquisition (SPAC) because it uses the proceeds of an initial public offering (IPO) to bring a private company to a public place.
In addition to merging with Fintech Acquisition Corp V, an acquisition business company, Fidelity Management & Research and Wellington Management also added $650 million in private placement of common stock.
Etoro’s recent announcement comes before Coinbase’s attempt to go public this year, and Kraken’s CEO Jesse Powell also revealed that his exchange is considering an initial public offering next year. According to reports, the mining company Northern Data AG also plans to offer an IPO with a valuation of approximately US$500 million.
Competitor Etoro plans to join the public arena, and Robinhood loses in the fiasco on Wall Street
Because Etoro provides stock brokerage services and the option of trading cryptocurrencies, the company is Robinhood’s competitor.
Robinhood, an online trading platform, has conducted an initial public offering, and recently, it was reported that the company had to raise funds amid Wall Street betting fiasco. On January 29, 2021, a reporter from the New York Times detailed that Robin Hand must obtain credit lines from six banks.
Since 2007, Etoro has attracted approximately 20 million registered users who invest in digital currencies, stocks and other traditional markets. According to Reuters, the stock rose immediately after Etoro announced that “the stock of Fintech acquisition company V rose more than 15% after the market.”
In addition, Betsy Cohen is a well-known businesswoman who is well-known for participating in SPAC investments.
What do you think of Etoro’s announcement that the company will go public through a merger worth more than $10 billion. Let us know your thoughts on this topic in the comments section below.
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