Chamath Palihapitiya Files for $250M SPAC Targeting DeFi, AI, and Energy Sectors

TLDR

• Chamath Palihapitiya filed to raise $250M for “American Exceptionalism Acquisition Corp A” SPAC
• The SPAC will target DeFi, AI, defense robotics, and energy innovation sectors
• Shares will trade on NYSE under ticker AEXA at $10 each with a 24-month window to find a merger partner
• Palihapitiya believes DeFi’s next phase involves closer integration with traditional finance
• Despite previously declaring crypto “Dead in America,” Palihapitiya now sees inevitable mainstream acceptance of crypto and stablecoins

Chamath Palihapitiya, the venture capitalist often called the “SPAC King,” is making a comeback to the blank-check company arena. He recently filed documents to raise $250 million for a new special purpose acquisition company (SPAC) called American Exceptionalism Acquisition Corp A.

The filing was submitted to the U.S. Securities and Exchange Commission on Monday. This marks Palihapitiya’s return to SPACs after walking away from several stalled deals about two years ago.

The new SPAC aims to offer 25 million shares at $10 each. These shares will trade on the New York Stock Exchange under the ticker AEXA once listed.

Palihapitiya will serve as chairman of the SPAC. Steven Trieu, managing partner at Social Capital, will take on the role of CEO.

The SPAC will focus on sectors that Palihapitiya describes as his “historical areas of business expertise.” These include artificial intelligence, decentralized finance (DeFi), defense robotics, and energy innovations like nuclear and solar power.

DeFi Integration with Traditional Finance

Palihapitiya has long been vocal about digital assets. In the filing, he shared his vision for DeFi’s future, stating that the next phase will involve tighter links between traditional markets and blockchain-based systems.

He cited Circle’s public listing as evidence of this momentum. Palihapitiya and Trieu believe Circle demonstrated how “decentralized finance can be used to disintermediate traditional finance intermediaries and provide clear value for customers via reduced friction.”

The venture capitalists acknowledged that mainstream acceptance of crypto and stablecoins has “taken longer than expected.” However, they now believe this path “appears to be inevitable.”

This perspective represents a shift from Palihapitiya’s previous stance. Just two years ago, he declared the crypto industry “Dead in America,” blaming then-SEC Chair Gary Gensler’s regulatory crackdown.

SPAC Structure and Timeline

The American Exceptionalism SPAC has 24 months to find a suitable merger candidate. This timeframe is standard for SPACs, which face strict time limits to identify private companies to merge with.

Palihapitiya has structured this SPAC differently from earlier models. The offering will not include warrants, which were once common for early buyers.

Instead, founder shares will only vest if the stock rises at least 50% above the $10 IPO price. Palihapitiya stated this design aims to better align with shareholder interests.

The sponsor, AEXA Sponsor LLC, has committed $1.75 million in a private placement. This investment will close simultaneously with the IPO. Banco Santander is leading the offering.

Palihapitiya warned potential retail investors about the high risks involved. He advised that those considering the stock should be prepared to lose their entire investment. He referenced Donald Trump’s saying that there can be “no crying in the casino.”

The new SPAC comes as the market shows signs of recovery. According to SPAC Research, more than $16 billion has been raised across 81 SPACs so far this year.

Palihapitiya’s track record with SPACs has been mixed. During 2020 and 2021, he led several high-profile SPACs, including successful mergers that resulted in SoFi Technologies. However, other SPACs under his leadership, such as Social Capital Suvretta Holdings II, III, and IV, were liquidated.

If successful, this would mark Palihapitiya’s first new deal since he closed two large vehicles in 2022 after failing to find suitable partners. At the height of the SPAC trend, Palihapitiya raised 10 blank-check firms, though not all completed mergers.

Some of his previous SPAC deals, including the high-profile listings of Virgin Galactic and Clover Health, faced intense scrutiny. These mixed results highlight the challenges SPACs often encounter in identifying worthy companies and navigating regulatory oversight.

The SEC filing comes as Paul Atkins now leads a more crypto-friendly SEC. The new leadership has dismissed several cases against crypto firms like Coinbase and Ripple, and created a Crypto Task Force to provide clearer rules while balancing innovation with consumer protection.

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