A group of prominent financial executives, including former Blackstone dealmaker Chinh Chu and Tether co-founder Reeve Collins, are in the process of raising $1 billion to establish what could potentially be the first publicly traded crypto treasury firm with a diversified portfolio. This groundbreaking initiative was reported by Bloomberg News on June 25, with sources familiar with the matter providing insights into the project.
The endeavor is being spearheaded through M3-Brigade Acquisition V, a special-purpose acquisition company (SPAC) that will undergo rebranding and allocate its capital towards constructing a balance sheet comprising various digital assets such as Bitcoin, Ethereum, and Solana. This strategy deviates from the prevalent trend of public companies focusing solely on Bitcoin for their treasury reserves.
The newly formed company will be led by Jaime Leverton, the former CEO of cryptocurrency mining company Hut 8. Leverton will be supported by two vice chairs, Wilbur Ross, the former U.S. Commerce Secretary during President Donald Trump’s first administration, and Gabriel Abed, the former Barbadian ambassador to the UAE and current chairman of Binance’s board.
Cantor Fitzgerald is reportedly advising on the fundraising process, although the final structure of the initiative, including the distribution of tokens, may evolve based on market conditions and investor interest. The proposed diversified portfolio is intended to mitigate volatility and provide investors with broader exposure to major networks within the crypto market.
While several publicly listed companies have recently added digital assets to their balance sheets as a hedge against inflation and an alternative store of value, M3-Brigade’s multi-token approach sets it apart from others in the industry. This unique treasury model aims to revolutionize crypto treasury management on public markets by offering a diversified investment portfolio.
In a similar vein, other companies have shown interest in diversifying their treasury reserves. For instance, ProCap BTC, led by Anthony Pompliano, announced plans to go public through a SPAC to acquire Bitcoin. Additionally, SharpLink Gaming has incorporated Ethereum into its treasury assets, and Nano Labs is accumulating BNB. However, none of these companies have adopted a multi-asset approach akin to M3-Brigade’s innovative strategy.
Following the news report on June 25, M3-Brigade’s shares experienced a 12% decline, only to rebound by 5% in pre-market trading on June 26. This fluctuation reflects the cautious interest of investors in the company’s new direction, which has yet to be officially announced by M3-Brigade, Chu, or Collins.
If successfully executed, this ambitious initiative will represent a significant milestone in the institutionalization of crypto treasury management on public markets. With a leadership team consisting of experts from Wall Street, stablecoin innovation, digital mining, and global diplomacy, M3-Brigade’s pioneering approach has the potential to reshape the landscape of crypto investments in the financial sector.