Trading Platform eToro to Go Public Via $10bn Merger With SPAC

That's right, another day, another SPAC listing...

This time its eToro's turn with the company confirming it is set to merge with blank cheque firm and special purpose acquisition company FinTech Acquisition Corp. V.

The trading platform is expected to be valued at approximately $10.4 billion.

Last year the firm, whose adverts seem to be everywhere you look, became a U.S. Financial Regulatory Authority Inc (FINRA) member as it looks to begin providing stock trading services in the U.S. in 2021.

They currently have over 20 million users in various countries, and in 2020, eToro added over 5 million new registered users...

In January this year, they added over 1.2 million new registered users and executed more than 75 million trades.

They also have a fair few pissed off potential customers waiting to join the platform following the recent surges in bitcoin and meme stocks...

(I know this because most of my friends have been moaning about it)

The transaction includes commitments for a $650 million common share private placement from leading investors, including ION Investment Group, Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC, and Wellington Management.

However, it has been noted that it is a small SPAC, with shareholders only owning 2.4% of eToro after the deal...

In 2020 eToro's revenue grew significantly, generating gross revenues of $605 million, up 147% year-over-year.

FOMC... Time for the Fed to take the bond bears out?