Crypto
Home›Crypto›Market Structure›SilverBox SPAC votes on extension as $217 million bitc…
SilverBox SPAC votes on extension as $217 million bitcoin trust faces redemptions
A four-month deadline extension could help SilverBox keep its Bitcoin SPAC deal alive, but it may not protect the $217.1 million trust balance after redemptions.
SilverBox Corp IV shareholders are scheduled to vote Tuesday on a four-month extension that would prevent the SPAC from liquidating, with an August 11 meeting set for 10:00 a.m. Eastern Time, according to CryptoSlate. The vote would also seek changes including moving the business-combination deadline from August 19 to December 19 and removing a $5,000,001 net-tangible-assets redemption limit.
CryptoSlate reports that even if the extension is approved, it would not preserve the $217 million trust backing SilverBox's proposed Bitcoin SPAC deal with Parataxis Holdings. SilverBox said it reported $217,134,228 in its trust as of June 30, and it estimated that redemptions at the extension meeting would be worth about $10.85 per public share, warning that the remaining balance after valid elections could be only a small fraction of the June amount.
The outlet said investors are not voting on the Parataxis merger itself, which would require a separate meeting. Instead, the extension amendments would give the SPAC more time, while investors who timely and properly elect redemption may redeem their shares regardless of how or whether they vote.
CryptoSlate added that the cash left after redemptions could determine whether the Bitcoin SPAC deal closes, because the latest merger registration statement requires the combined company to receive at least $25 million in net cash and equivalents after redemptions and transaction expenses. The filing says the calculation can include remaining trust funds and financing completed at closing, and Parataxis may waive the condition in certain circumstances.
Latest closeBitcoin $65,069.46 ▲0.3%