GS Acquisition Holdings Corp. II (NYSE:GSAH), a SPAC sponsored by Goldman Sachs (NYSE:GS), rose as much as 10.65% to $12.16 on Wednesday, shortly before closing bell – rallying after a big drop, following a rumor on social media.
GS Acquisition Holdings Corp II (NYSE: GSAH) is rumored to be targeting the popular crypto interest account and crypto trading app, BlockFi.
In S-1 filing dated June 24, 2020 GS wrote that they are aiming at “diversified industrial, healthcare, technology, media and telecom, and alternative asset management sectors” to merge with as these companies tend “to be cash generative businesses that are growing at rates higher than U.S. gross domestic product”.
And the source of this rumor, that pushed GSAH stock up, is the fact that Goldman recently announced how they are going to re-activate its crypto trading desk after detecting huge institutional demand for bitcoin among its client base.
“I think it’s pretty fair to say that all of our institutional client discussion is really focused around bitcoin,” -Matt McDermott, Goldman Sachs’ head of digital assets said recently.
On the other side, BlockFi will go IPO, as soon as they can, which means via faster, SPAC, route.
“The selling point of a SPAC is speed and there could be a scenario where based on what is going on in the crypto market this could be a very valuable way to go public.” -BlockFi CEO Zac Prince noted previously.
So, while BlockFi might use SPAC route and GS is trying to bank on BTC rally, no one can be sure which SPAC will get to take BlockFi public.