Blank Checks and Bitcoin Bets - The SPAC Experience

29/04/2025 11 min Temporada 3 Episodio 13
Blank Checks and Bitcoin Bets - The SPAC Experience

Listen "Blank Checks and Bitcoin Bets - The SPAC Experience"

Episode Synopsis

Hi Satsmate Stackers, Over the past 5 years, we have seen countless SPACs rise, as it is an alternative way to raise capital. These are one of the many ways to bring a company public, and it is important to be aware of the risks before shelling out your hard earned cash on these investments. In todays podcast, I will go over the following: SPACs are blank-check companies that facilitate private companies going public if the deal aligns.Institutional capital often backs SPACs, with sponsors typically holding large stakes they sell post-launch.I’ve participated in SPACs like SPCE, DKNG, CCIV, Nikola, and Folds.Most SPACs I’ve seen end 70–80% down, causing significant capital erosion, though they offer an easier path to going public.After these experiences, I’ll avoid investing in SPACs for the next decade.SPACs involve complex financial engineering and risks not present in traditional investments.Key questions include: How many insiders hold shares, and how much? How much dilution occurs post-IPO? What’s the company’s valuation after going public?Other critical factors: What are the asset’s end-to-end fundamentals? What’s the multiple to NAV (Net Asset Value)?These questions are vital before investing in a SPAC, but hype often overshadows due diligence, leaving many investors burned.21 Capital could benefit Bitcoin by optimizing Bitcoin per share and developing Bitcoin financial products and lending models.Led by Jack Mallers and backed by SoftBank and Cantor Equity Partners, 21 Capital seems promising but isn’t ideal for retail investors who can buy spot Bitcoin at fair value for cold storage.I always appreciate all the support you guys give me on this podcast, Please feel free to share it around or click one of the links below for your support! Best Regards, SatsMate StackFold Credit Card: https://foldapp.com/credit-card?r=qMB4PReferral to Stacker News: Circular economy with bitcoin discussions involved!  https://stacker.news/r/SatsMatePrimary Bitcoin Buys Through Strike: The primary place I go to buy Bitcoin. https://invite.strike.me/2MSTYG Secondary Bitcoin Buys Through Fold: A nice exchange w/ rewards & bitcoin buys.https://use.foldapp.com/r/HTFKVY9LBrowser Extension Slice: Earn Satoshis for ads and surveys you browse.https://addslice.com/?crew=f5n2V5EILolli Rewards: Earn sats by using a linked card at participating vendors https://lolli.com/share/PQFAMMhttps://zbd.gg/GalmaDuFria This is my personal QR code. It allows anyone to send me Bitcoin and messages directly to my ZEBEDEE. lnurl1dp68gurn8ghj7ctsdyh85etzv4jx2efwd9hj7a3s9aex2ut4v4ehgttnw3shg6tr943ksctjvajhxtmpxuurjcmxxvuz6wf58q6z6drpv5uj6c3jvy6z6epexe3ryd3kxe3kvcnr7y2uzjFinancial Disclaimer: Nothing stated in this video is a recommendation from SatsMate to buy or sell a particular security or asset class. It would help if you wisely considered your tolerance for risk, time horizon, and financial goals before investing. With investing, you risk losing money, always read an investSend us a textSupport the showYoutube: SatsMateX: SatsMateInstagram: SatsMateswebsite: https://satsmate.wordpress.com/

More episodes of the podcast The SatsMate Stack