$1.5B SPAC deal for Solana DAT reportedly canceled

A $1.5B SPAC (Special Purpose Acquisition Company) deal involving Joe McCann’s Solana DAT (Digital Asset Treasury) has reportedly been called off. The deal was called off following backlash over the underperformance of his fund, Asymmetric Financial.

Anonymous sources with insider knowledge of the deal said the DAT’s situation was “still fluid,” and the company was trying to find an alternative way forward. The DAT, set to be called Accelerate according to the investor pitch deck, is planned to go public through a SPAC with Gores Holdings X. However, the reason for the deal’s cancellation has not been disclosed.

McCann, the founder and CEO of Asymmetric Financial, was set to be Accelerate’s co-founder and CEO. CoinList’s board member, Komal Sethi, was to become its other co-founder and CSO (Chief Strategy Officer). Neither McCann nor Sethi has made official statements to substantiate the rumors.  

McCann pitches Accelerate amid Asymmetric’s criticism

McCann pitched Accelerate at an awkward time as he faced criticism from the crypto industry following the poor performance of his Asymmetric crypto hedge fund. The crypto hedge fund’s liquidity was so far down 80%. However, one investor who requested anonymity came to McCann’s defense, saying that Accelerate could be an “escape hatch” for his failing hedge fund. 

The company’s financial model and investor presentation revealed that it planned to raise $1.5 billion. Roughly $800 million was to be raised through a PIPE (Private Investment in a Public Enterprise), while $358.8 million was to be provided by the SPAC. The plan also included raising $103 million by selling SPAC warrants; the final $250 million was meant to be raised via convertible debt. Accelerate will eventually have $1.36 billion after fees and operating expenses, which it will use to purchase approximately 7.32 million SOL at $186.31.

However, the anonymous investor questioned McCann’s future role as a CEO, noting that investor confidence played a critical role in fundraising for Accelerate. It remained unclear how the $1.5 billion would be raised, although the investor disclosed that a “substantial amount” had already been raised. Another unknown is when the deal will be closed, but it is estimated that this will be done by the end of this year. Accelerate will instantly flip Upexi to become the market’s largest SOL treasury company if the fundraiser succeeds. 

McCann explains Asymmetric’s bumpy ride

The Asymmetric CEO took to X to clarify circulating “misinformation” from online critics regarding why and where the company was failing. He pointed out that the company was built for high volatility markets and its strategy worked for years until it stopped serving the company’s LPs. McCann notified the fund’s LPs about the shift from liquid trading strategies to a “specific illiquid investment.

McCann stressed that all Asymmetric’s valid redemption requests had been honored since the company’s inception. He added that his company had “a relentless commitment” to its LPs and accountability. The Asymmetric executive said his company’s job was to build for what was next and “adapt with discipline” to stay distinguished from its competition. 

“Our venture strategy remains unchanged and unwavering in its commitment to source and support the future of blockchain. We aren’t going anywhere.”

–Joe McCann, Founder and CEO of Asymmetric Financial 

The Asymmetric CEO further clarified that only Asymmetric’s Liquid Alpha Fund was struggling this year, while other investment vehicles were still performing. He also pointed out that this was one of the many “ups and downs” that tested his resolve throughout his career in finance. McCann said no investor looked forward to sharing negative results, but adapting when markets shifted took” fortitude”.

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