Kevin Durant, a two-time NBA champion, has launched a SPAC, or Special Purpose Acquisition Company, that will look to partner with tech-driven firms, including those in the crypto space. The SPAC was founded in collaboration with Durant’s business partner Rich Kleiman.
The firm’s strategy will be to acquire or merge with a private company in the crypto space and then take it public. Durant was also an early investor in Coinbase and profited handsomely when the exchange went public.
Durant established the SPAC in collaboration with business partner Rich Kleiman and investment banking firm Lion Tree through Thirty-Five Ventures, Durant’s investment firm. The SEC has published a filing for a new SPAC called the Infinite Acquisition Corp, which is seeking to raise up to $200 million in an initial public offering.
A SPAC, or Special Purpose Acquisition Company, is a company formed to merge with or acquire another private firm in order to take it public. These companies are commonly referred to as “blank cheque” companies because their sole purpose is to merge with a private firm, allowing the company to avoid a standard IPO.
Concentrating on Crypto
Durant and entrepreneur Rich Kleiman have previously collaborated on transactions involving the cryptocurrency exchange Coinbase and the online brokerage firm Robinhood. Infinite Acquisition, in its SEC filing, stated,
Infinite Acquisition has made digital assets and cryptocurrency a priority. This is a topic that has recently piqued the interest of consumers and users of exchanges such as Coinbase, Kraken, and Ledger. It has identified cryptocurrencies and digital asset firms as a potential focus area.
The filing singled out Kraken, Coinbase, BlockFi, Ledger, and NFT-related companies like Dapper Labs and Axie Infinity. According to the filing for these companies,
“These technologies make the internet ownable, providing new ways to reward and compensate creators for their work, allowing unrestricted creativity, and driving the emergence of potentially massive new platforms to capitalize on this scarcity democratization.”
Other Companies to Keep an Eye On
Infinite’s SEC filing paints a broad picture of the types of companies it intends to target for acquisition. These companies include those in the health and wellness, sports, e-commerce, and other industries such as food technology and supply.
“Through their unique relationship with the consumer, we will seek visionary founders leading technology-enabled platforms disrupting the traditional worlds of sports, health, wellness, food, commerce, and culture.”
Listing on the New York Stock Exchange
Infinite Acquisition plans to list on the New York Stock Exchange, with its units trading under the ticker NFNT.U. It will sell 20 million units for $10 each. Credit Suisse will underwrite the offering, and Infinite has promised to buy back all shares in cash if the SPAC does not complete a merger within 18 months of closing.
The NBA star has also invested in the cryptocurrency app Valora. Carmelo Anthony, Nasir’ Nas’ Jones, Sean ‘Diddy’ Combs, and YouTuber Casey Neistat are among the app’s celebrity backers. Valora uses stablecoins to make sending money abroad easier, more cost-effective, and less time-consuming. It also allows users to avoid paying exorbitant fees charged by foreign exchange firms.