Former Blackstone Exec and Tether Co-Founder Raise $1B to Buy Bitcoin

Key Insights:

• Former Blackstone exec and Tether co-founder launch crypto SPAC.
• M3-Brigade to diversify crypto portfolio with Bitcoin, Ether, Solana.
• GameStop raises funds to invest in Bitcoin for treasury reserve.

A former Blackstone executive and a co-founder of Tether teamed up to raise $1 billion for a new special-purpose acquisition company (SPAC) focused on digital assets. The vehicle, M3-Brigade Acquisition V Corp., planned to build a diversified portfolio of cryptocurrencies, including Bitcoin, Ether, and Solana.

The announcement came as institutional crypto adoption widened, with capital markets seeking more diversified exposure beyond Bitcoin.

Key Figures Behind the Project

The initiative is backed by Reeve Collins, a Tether co-founder, and Chinh Chu, the former co-head of private equity at Blackstone. They acquired sponsor interests in M3-Brigade in May through an affiliate of CC Capital, the investment firm Chu founded. Collins, who previously served as the CEO of Tether in its early years, is now focused on Pi, a yield-bearing stablecoin protocol. Meanwhile, Chu’s extensive experience in large-scale deal-making and SPACs adds credibility to the venture.

In addition to Collins and Chu, notable figures are also involved. Wilbur Ross, the former U.S. Secretary of Commerce, and Gabriel Abed, chair of Binance’s board of directors, will serve as vice chairmen of the vehicle. Jaime Leverton, the former CEO of Hut 8 Mining, is set to lead the venture as CEO.

Their collective experience in the finance and blockchain sectors enhances the credibility and potential of this venture.

A Multi-Token Strategy

The emerging SPAC will also have a more diversified collection of digital assets as opposed to the Bitcoin-maximalist approach undertaken by organizations such as the Michael Saylor strategy or Metaplanet. The goal is to attack Bitcoin, Ether and Solana, among emerging tokens. This is unlike the individuals who have only dealt with BTC and Metaplanet has built a stockpile of Bitcoin to the value of $60 billion. The multi-token strategy sets the M3-Brigade Acquisition V Corp. apart, offering flexibility to adapt to the dynamic nature of the crypto market.

The move to enter into new tokens might help the vehicle deal with fluctuations as experienced in the digital asset front. This move is closely observed by investors and analysts, not to mention the issue of government involvement in digital assets remains an active topic of debate.

Ongoing Fundraising and Potential Adjustments

The $1 billion target for fundraising is still in progress, and there is a possibility that the final amount could change as discussions continue. According to people familiar with the matter, the details of the venture remain confidential for now. Cantor Fitzgerald LP is advising on the deal, although representatives from both M3-Brigade and Cantor have declined to comment at this stage.

Although the total amount of funds raised remains unclear, the diversification into the digital asset sphere is a part of the general tendency of how institutional investors broaden the scope of their approaches to the space. This vehicle may eventually lead to further investment vehicles focusing on crypto assets as the cryptocurrencies continue to be integrated into the mainstream capital markets.

GameStop Makes the Same Move Parallel

On the same day the crypto acquisition vehicle announcement was made, video game retailer GameStop disclosed it had raised an additional $450 million through a follow-on sale of zero-coupon convertible senior notes.

This followed a $2.25 billion private placement just one week earlier, bringing the total capital raised from the offering to $2.7 billion. The notes, due in 2032, can convert into GameStop Class A common shares at a price of $28.91, representing a 32.5% premium over the stock’s volume-weighted average as of June 12.

GameStop’s move aligns with its broader strategy of investing in cryptocurrencies. The company stated that the capital raised would be used for general corporate purposes, including acquiring BTC as part of its treasury reserve. This marks a significant step for the company, which has been integrating more digital and blockchain-related strategies into its operations.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.