These Trump Insiders Want A Piece Of Crypto, SPAC Action

Two executives with ties to President Donald Trump and Trump Media & Technology Group DJT have a new SPAC offering targeting the cryptocurrency market.

With several stocks soaring on recent crypto-related mergers, could this be a SPAC to watch?

The SPAC Offering: On Thursday, Renatus Tactical Acquisition Corp I RTACU began trading. The units consist of one common share RTAC and one-half of a redeemable warrant RTAW.

After announcing a 17.5 million offering at $10 per unit to raise $175 million, the offering was upsized to 21 million shares raising $210 million.

While SPACs have received less attention in recent years, this particular blank check company, given its two names attached, could quickly attract investors’ attention.

Among the names involved in the sponsor companies of the SPAC deal are Eric Swider and Devin Nunes. Swider is the former CEO of Digital World Acquisition Corporation. The company, referred to as DWAC, was a SPAC that took Trump's media company Trump Media & Technology Group public.

Swider and Nunes currently serve as director and CEO of Trump Media & Technology Group, respectively. For the new SPAC, Swider serves as CEO while Nunes is chairman.

SPAC expert and Accelerate CEO Julian Klymochko highlighted the offering in a tweet Thursday.

"The former CEO of $DWAC, Eric Swider, along with the current CEO of $DJT, Devin Nunes, launched a new SPAC, Renatus Tactical Acquisition I. It IPO'd today. Its focus is on the crypto industry in the U.S. It's one to watch!" Klymochko tweeted.

The SPAC Target Market: The SPAC could target a merger in any industry, sector or geographic region. However, the prospectus indicates a focus on finding a company in the cryptocurrency or blockchain space in the United States. Data security and dual-use technologies are also listed as potential target areas for a deal.

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"We intend to capitalize on the ability of our management team to identify, acquire and operate a business or businesses that can benefit from our management team's established global relationships, sector expertise and active management and operating experience," the prospectus reads.

The SPAC is targeting a company valued between $500 million and $5 billion.

The prospectus also highlights Trump's positive push for cryptocurrency and the growing market opportunity for Bitcoin BTC/USD and other cryptocurrencies. It recalls the recent executive order to create a strategic Bitcoin reserve by stockpiling cryptocurrency assets.

Why It's Important: The timing of the public offering could be a strong setup for the management team and investors with several recent crypto-related merger announcements seeing shares trade significantly higher and receive increased attention.

Here are some of the recent deals:

Bitcoin holding company Twenty One announced a SPAC merger with Cantor Equity Partners CEP with a target of holding 42,000 Bitcoin. The merger includes backing from Tether, SoftBank Group and Jack Mallers, who will serve as CEO. After the merger, the company will trade as "XXI" on the Nasdaq and could be one of the largest public holders of Bitcoin.
Asset Entities ASST announced a merger with Strive Asset Management to become a public Bitcoin holding company on the Nasdaq.
Nakamoto Holdings announced a merger with Kindly MD KDLY in a deal that will see the newly formed company be a Bitcoin holding company. Nakamoto comes from the mind of Bitcoin Magazine CEO and Trump crypto advisor David Bailey, who will serve as CEO.
Gryphon Digital Mining GRYP recently announced a merger with American Bitcoin, a subsidiary of Hut 8 Corp HUT. American Bitcoin was launched in collaboration between Hut 8 and Eric Trump earlier this year. The new company will trade on the Nasdaq with the ticker "ABTC."

While not all of these were SPAC mergers, these stocks all saw shares trade higher on deal announcements, illustrating investors appetite for crypto-related mergers.

Price Action: Renatus Tactical Acquisition Corp units trade at $10.88 Thursday and have traded between $10.60 and $10.99 since going public.

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