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Blockchain Coinvestors to take Linqto public in $700m deal

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Apr 10, 2024
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Illustration: Allie Carl/Axios

After breaking up with crypto fintech Qenta last year, SPAC Blockchain Coinvestors agreed on Tuesday to take unicorn investing platform Linqto public.

Why it matters: The deal comes as public companies have found it difficult to buy crypto-related businesses due in part to an SEC accounting rule introduced in 2022.

What's next: Blockchain Coinvestors and Linqto expect the deal to close in the second half of 2024.

  • Linqto is backed by Hard Yaka, Spein Ventures and Keiretsu Capital. It claims to have 756,900 registered users who have made $388 million in total investments.
  • Accessible only to accredited investors, Linqto offers shares in Anthropic, Ripple and Alto Pharmacy.

Between the lines: Companies say guidance in Staff Accounting Bulletin 121 makes it more expensive for them to hold crypto and has made accountants more nervous when marking tokenized assets.

State of play: For now, going public for a crypto-related company has meant cutting out its crypto business.

  • Apex Fintech sold off its crypto business to Bakkt before filing confidentially for an IPO.
  • Webull spun off its crypto-trading offering before agreeing to go public in a SPAC deal.
  • "We spun that business out into a non-affiliated company with a completely different group of shareholders and different share structure called Webull Pay before the end of 2023 for the specific purposes of going public," Webull group president Anthony Denier said at the time.
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