Online cryptocurrency and stockbroker platform Etoro has announced that the company is going public through a deal with a special purpose vehicle called Fintech Acquisition Corp V. The Etoro merger is a $ 10.4 billion deal backed by banking entrepreneur and Fintech Acquisition Corp. V chairman Betsy Cohen.
Etoro enters into a special acquisition valued at $ 10.4 billion
Etoro, the popular cryptocurrency trading platform and stockbroker service, is planning an IPO worth $ 10.4 billion. The merger was claimed by a company called Fintech Acquisition Corp V. The investments also come from Japanese firm Softbank and the finance manager’s Vision Fund 2.
The deal is a Special Purpose Acquisition (SPAC) in which the proceeds from an initial public offering (IPO) are used to bring private companies to the public place.
In addition to merging with Fintech Acquisition Corp V, an acquisition firm, Fidelity Management & Research and Wellington Management have added a private placement of $ 650 million in common stock.
Etoro’s recent announcement follows Coinbase’s attempt to go public this year, and Krakens CEO Jesse Powell also announced that its exchange is considering an IPO next year. Mining company Northern Data AG is also reportedly planning an IPO with an estimated initial public offering of $ 500 million.
Competitor Etoro plans to join the public arena while Robinhood licks wounds from the Wall Street fiasco
Since Etoro offers a stock broker service combined with options for trading cryptocurrencies, the company is a competitor of Robinhood.
The online trading platform Robinhood has already carried out an IPO. More recently, the company reportedly had to raise funds for the Wall Street Bets fiasco. On January 29, 2021, reporters for the New York Times told Robinhood needed a line of credit from six banks.
As of 2007, Etoro has accumulated around 20 million registered users who invest in digital currencies, stocks and other traditional markets. Fintech Acquisition Corp V’s shares rose more than 15% after the pre-bell announcement by Etoro, according to Reuters.
Additionally, Betsy Cohen is a well-known businesswoman who is known for her involvement in SPAC investments.
What do you think of Etoro’s announcement that the company will go public through a merger worth over $ 10 billion? Let us know what you think on this matter in the comments section below.
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$ 10.4 Billion, $ 650 Million, Acquisition, Crypto Exchange, Cryptocurrencies, Fidelity Management & Research, Fintech Acquisition Corp V, Initial Public Offering, Initial Public Offering, Merger, Robinhood, Softbank, Softbank Group, SPAC, Special Purpose Vehicle, Wellington management
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