Bloomberg: ReserveOne has terminated its $1 billion merger listing deal with M3-Brigade

Foresight News reported, citing Bloomberg, that cryptocurrency asset management company ReserveOne has failed to merge with special purpose acquisition company (SPAC) M3-Brigade Acquisition V Corp. According to sources familiar with the matter, the $1 billion deal collapsed after at least two major investors in ReserveOne demanded the sale be terminated. Investors believed that, since the price of Bitcoin and other tokens had dropped significantly since the merger was announced nearly a year ago, ReserveOne's share price would inevitably fall below its net asset value if it were to go public. These sources were not authorized to discuss the details publicly. They also stated that, with the fees required to be paid to bankers and sponsors to complete the transaction, proceeding was simply not worthwhile.

According to people familiar with the matter, investment firm Meteora Capital participated in both the BSTR and ReserveOne deals through a strategy known as Private Investment in Public Equity (PIPE). The sources also revealed that, given the fundamentals, Meteora had previously advocated strongly for blocking these deals from being completed.

Several other cryptocurrency fund management companies that once sought to go public via SPAC remain in limbo, due to drastic changes in financial conditions. Bloomberg previously cited Artemis data reporting that from Bitcoin's peak in October last year to early June this year, the market capitalization of publicly traded DAT evaporated by approximately $6.2 billion.