- Chamath Palihapitiya wants to collect $ 250 million for a white check company.
- He will seek to acquire companies in DEFI and in other sectors.
- “This investment is most suitable for institutional investors,” he said.
Do not cry in the casino.
This is the message of Chamath Palihapitiya to those who could lose money if they invest in its new project, a master’s degree in white that seeks to collect $ 250 million to acquire companies in decentralized finance, artificial intelligence and other sectors.
The investor and the host of the Podcast focused on Silicon Valley All-in offered this comment by announcing the creation of its new company based in the Cayman Islands.
His name will be the American exceptionalism acquisition Corp. A, according to a document deposited Monday with the Securities and Exchange Commission.
“Without a doubt, investment will result in substantial risk, including the possibility of total loss,” wrote Palihapitiya in a “founding letter” in the file.
“This investment is the most suitable for institutional investors, and retail investors should get closer to caution, if at all,” he added. “If they lose all their capital, they will embody the adage of President Trump that there can be” no crying in the casino “.”
The investment comes in the middle of positive impetus on the cryptography market. Analysts predict several times that Bitcoin and Altcoins will reach price peaks never seen before this year. And with these forecasts, the entrepreneurs left the woodwork to collect everything, from stablecoin companies to cryptographic treasury vouchers.
This year, there was also an increase in the first public offers. Circle and Haussier have already become public and the Gemini are about to follow the costume.
‘Fundamental risks’
Enter American exceptionalism.
Here is the plan, as Palihapitiya presented it in the file. The company will sell 25 million shares for $ 10 each and are looking for registration on the New York Stock Exchange under the Exea Ticker. Palihapitiya expects the company to spend 3.1%, or $ 7.7 million, on the subscription commissions.
“The greatest gains in the future will come from companies involved in the repair of fundamental risks which come from our interconnected world order while strengthening American exceptionalism,” wrote Palihapitiya.
American exceptionalism will target companies in four areas, according to the letter: energy production, AI, challenge and defense.
“Traditional finance is defined by the power of the charge, with large banks and lenders playing a dominant role in our economy,” wrote Palihapitiya.
“However, decentralized finance and cryptocurrency are no longer simply on the sidelines. As these new companies are evolving, I think they will revolutionize several financial products – including international payments, intelligent contracts and the transparency of the supply chain. ”
American exceptionalism is an acquisition company for special use, or SPAC, – a company that makes public without a commercial model beyond the acquisition or merger of existing companies. This allows managers to make a private public company without the hassles that accompany the process of traditional IPO.
In a typical spac, the founders receive 20% of the company’s shares. American exceptionalism will be different, said Palihapitiya.
It will receive 30% of the action, but it will only be acquired once the price of the company will increase by 50% compared to its price of Introduction on the stock market, “by ensuring that the founding actions of the sponsor only carry out the value if the public shareholders achieve the value.”
Facebook ancal
This is not the first Palihapitiya rodeo.
As the first framework of Facebook and founder of the social venture company Capital, he began to launch spaces in 2017.
“At the time, we estimated that there were approximately 150 private American technological companies with an assessment of more than $ 1.0 billion,” he wrote.
“We believe that they remained partly private due to a fundamentally broken IPO process.”
According to Palihapitiya, more than 700 private companies valued at $ 1 billion or more in the United States. At the same time, there are less than 5,000 public companies, a number much lower than the average of around 7,000 in the 1990s.
“The broader investment population remains excluded from having exceptional private companies – often relegated to the possession of the inherited society which is disturbed instead,” wrote Palihapitiya.
“We believe that this has a consecutive and notable impact on long -term American technological supremacy.”
Aleks Gilbert is DL News“DEFI correspondent based in New York. Do you have a tip? Email to Aleks@dlnews.com.
