Europe’s first: Sweden to launch first crypto SPAC

Europe’s first: Sweden to launch first crypto SPAC

By Sanne Moonemans - min read

As the first nation in Europe, Sweden is launching the first crypto-based SPAC later this month.

SPAC popularity is on the rise

A SPAC, or Special Purpose Acquisition Company, is a company that has no commercial activities and is formed solely to raise capital through an IPO for the purpose of acquiring or merging an existing company.

SPACs have been around for decades, but have seen an explosion in recent years. In 2020, 247 SPACs were created in the United States, investing 866 billion euros in them. In the first quarter of 2021, a record €85 billion was raised from 295 newly formed SPACs.

Why a SPAC?

But what is such a SPAC for? It is an accelerated route to an IPO. This is desirable for many crypto and blockchain companies, as an IPO via this route is usually faster, easier and cheaper than the traditional method. In addition, crypto companies are a new and potentially attractive opportunity for SPAC investors.

Last year alone, many crypto companies, including Bakkt, eToro, and CompoSecure, went public through SPACs. Many have looked at the long road that Coinbase had to travel before they could start their IPO. This lasted no less than 6 months.

HODL will be launched on January 21

Thus far we have’n’t seen that many SPACs in Europe, and none with a specific focus on the crypto industry. This is about to change with the IPO of the recently formed Swedish company HODL SPAC Europe AB, with the ticker “HODL”.

According to the announcement, the company will enter the Swedish Spotlight stock market on January 21. This launch as now become possible since they have now raised 2.8 million euros in capital.

Big ambitions in technology

The main goal of HODL SPAC is to acquire at least one company within the blockchain industry with a value of up to SEK 500 million (approximately GBD 40.5 million) within 24 months of listing.

The first group of investors includes crypto figures such as Bitcoiner Eric Wall, Youtuber Ivan “on tech” Liljeqvist, and Christian Ander. The latter is CEO of Michaela Berglund will take office as chairman of the company.

The main goal of HODL SPAC is to acquire at least one company within the blockchain industry with a value of up to SEK 500 million (approximately EUR 48 million) within 24 months of listing.

"HODL is now looking for companies with big ambitions and an underlying technology with great commercial potential. With HODL, a company gets a more predictable path to listing, which means that the focus can remain on developing the company. The availability of an experienced team, to the capital market and increased awareness can really accelerate the company's development." says Chairwoman Michaela Berglund.

Great opportunity for women in the industry

Chairwoman Michaela Berglund highlights opportunities for women to enter the crypto industry.

“There is a great opportunity for women to get into the industry early on, which in fact already represents billions of dollars worldwide. Women have generally been more cautious about investing. I believe that women not only seek the opportunity to work in the industry, but can also start investing in it, in this way they can absorb the value creation of the innovation on the same terms as men.”