SPAC King, Chamath Palihapitiya, is back in the blank check game with a $250 million initial public offering for American Exceptionalism Acquisition Corp. A. According to the filing with the US Securities and Exchange Commission (SEC) on Monday, the firm is targeting decentralized finance, AI, energy, and defense.
Palihapitiya Bets on Decentralized Finance Instead of Bitcoin
The firm is seeking to raise $250 million via an IPO by selling 25 million shares at $10 each under the ticker AEXA on the New York Stock Exchange. It will merge with a business operating in what Palihapitiya describes as his “historical areas of business expertise.”
He singled out DeFi, saying that these industries could be vital in “maintaining US global leadership for the next century.” The special purpose acquisition company (SPAC) would be led by Social Capital managing partner Steven Trieu as CEO and Palihapitiya as chairman.
“While Mr. Palihapitiya has long been a proponent of Bitcoin as an inflation hedge and alternative to fiat currencies, we believe that the next stage of development is the increased integration between traditional finance and decentralized finance.”
He indicated that the next phase will involve tighter links between traditional markets and blockchain-based systems. Palihapitiya cited Circle’s listing and the broader adoption of stablecoins as evidence of momentum.
Two-Year Window to Find A Merger
Palihapitiya, who has floated 10 blank check vehicles since his first one in 2017, became the face of the SPAC mania before leaving in 2022. This time, the SPAC has 24 months to find a merger candidate. If it succeeds, it would become Palihapitiya’s first deal since he shuttered two large vehicles in 2022.
In a letter accompanying the filing, Palihapitiya wrote, “I believe the biggest gains in the future will come from companies that are involved in fixing the fundamental risks that come from our interconnected global order while reinforcing American exceptionalism.”
Can This Revive Interest in SPAC?
Palihapitiya’s new SPAC launch may face far greater scrutiny than during the 2020–2021 boom, due to the poor post-merger performance of most previous SPACs.
He clarified that a SPAC may not be fit for every business looking to go public, with its challenges of regulatory changes and investor skepticism. However, if he succeeds, this could rekindle broader enthusiasm for SPACs, and this can help revive interest among investors, sponsors, and target companies, reigniting deal discussions.
