Trading platform eToro said Tuesday it will become publicly traded via a merger with a special purpose acquisition company (SPAC). The site has long supported cryptocurrency buying and selling.
- Through a merger with FinTech Acquisition Corp. V, the combined entity will have a implied equity value of about $10.4 billion, reflecting an implied enterprise value for eToro of about $9.6 billion, eToro said.
- The deal includes $250 million in gross proceeds from FinTech V's cash in trust from a fully committed private placement in public equity at $10 per share that will close at the same time as the merger.
- The combined company will operate as eToro Group Ltd. and be listed on the Nasdaq. eToro said it expects to have about $800 million net cash on its balance sheet.
- FinTech Acquisition Corp. V is led by Betsy Cohen, who has been involved with several other SPACs, including one that took Perella Weinberg public.
- Goldman Sachs is advising eToro while Citi is advising FinTech V.
- The eagerly awaited publicly listing of Coinbase, which may reach a valuation of $100 billion, has been expected to ignite a wave of crypto firms to go public, many of them using SPACs.
- Bakkt, the cryptocurrency exchange launched by Intercontinental Exchange (ICE) in 2018, is also expected to carry out a SPAC merger later this year, valuing the combined entity at $2.1 billion.
- "We started this year with a bang thanks to the crypto rally," eToro CEO Yoni Assia told CoinDesk in an interview.
Read more about
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.