CoinShares, a European digital asset manager, is set to debut on U.S. public markets today following the completion of a special purpose acquisition company (SPAC) merger, underscoring the cryptocurrency industry’s deepening connections to public markets.
On Wednesday, the company announced that it had completed its previously announced business merger with Vine Hill Capital Investment Corp., which created a up-to-date holding entity, CoinShares PLC. The combined company begins trading on the Nasdaq stock exchange on Wednesday under the symbol CSHR.
The deal, first announced in September, values ​​CoinShares at approximately $1.2 billion and includes a capital commitment of $50 million from institutional investors.
Although the Nasdaq debut marks CoinShares’ entry into U.S. public markets, prior to the listing, the company was already listed on a stock exchange in Europe.
The U.S. listing is intended to attract institutional capital, broader analyst coverage and greater visibility, while providing CoinShares the opportunity to expand its presence in the world’s largest financial market. The move also comes as the regulatory environment for digital assets in the United States continues to evolve.
CoinShares manages assets worth over $6 billion and is one of the largest cryptocurrency investment companies in Europe. It is best known for its cryptocurrency trading products (ETPs), which are listed on European exchanges.
A tougher backdrop for cryptocurrency stocks
The landscape for digital asset companies has changed dramatically since September, when the CoinShares SPAC deal was first announced.
According to data from Yahoo Finance, the exchange-traded fund issuer’s ETF (WGMI) fell by more than 22%.
Since then, the cryptocurrency market has lost more than half of its value following a broad correction in digital asset prices, a decline in trading volume and the fallout from the October 10 cryptocurrency liquidation event, which resulted in widespread deleveraging as well as a more volatile environment for capital raising and investors.
Cryptocurrency-related stocks suffered the most. Companies like Coinbase, Gemini, and Figure Technologies have seen acute declines this year, while Circle has bucked the trend with continued growth in stablecoin prices.
However, Bernstein analysts do not expect the economic deterioration to continue. In a recent note, they said cryptocurrency stocks may be nearing a low in first-quarter earnings, which are widely expected to reflect feeble results.
Related: Circle wallowed in CLARITY Act concerns, but the fundamentals haven’t changed – Bernstein
