Crypto wealth platform Abra to go public via $750 million SPAC deal

Crypto wealth platform Abra announced plans to become a public company by merging with the special purpose acquisition company (SPAC) New Providence Acquisition Corp. III in a deal valuing the firm at $750 million. The combined entity will be renamed Abra Financial Inc. and is expected to trade on Nasdaq under the ticker ABRX. The transaction is anticipated to provide up to $300 million in cash, which Abra intends to use for expanding its institutional crypto lending, yield, and custody offerings, as well as for product development and hiring.

Founded in 2014, Abra serves institutional clients, registered investment advisers, family offices, and wealthy individuals, offering services like crypto storage, trading, yield generation, and borrowing against holdings. The company shifted its strategy away from retail operations after facing regulatory challenges regarding unregistered lending and securities offerings, leading to settlements with state regulators and the SEC in 2023 and 2024. Abra rebuilt its business around its SEC-registered investment arm, Abra Capital Management.

The company currently manages "hundreds of millions of dollars in assets" and has a goal to surpass $10 billion in assets under management by 2027. The merger remains subject to approval from shareholders and regulators.

(Source：CoinDesk)