According to ChainCatcher, the merger between crypto asset management company ReserveOne and the special purpose acquisition company M3-Brigade Acquisition V Corp. (MBAV) has been called off. The transaction, valued at $1 billion, had been structured as a SPAC deal that would have taken ReserveOne public, but the plan has now failed to reach completion.
People familiar with the matter said the deal collapsed after at least two major ReserveOne investors demanded that the sale be terminated. Those investors argued that since the merger was announced nearly a year ago, the prices of Bitcoin and other tokens had fallen sharply. In their view, if ReserveOne were to list at this point, its share price would trade below net asset value, making the transaction unattractive for existing holders.
The same investors also factored in the costs tied to the transaction. Beyond the concern that ReserveOne’s listed shares would be priced below net asset value, the company would also need to pay fees to bankers and sponsors. Taken together, those costs and valuation concerns made the $1 billion merger with MBAV economically unfavorable, leading to the collapse of the deal.