One of America’s most prolific hedge fund managers is open to partnering with Elon Musk to take X public again, and the Dogecoin community is getting excited.
Bill Ackman had his SPAC investment vehicle approved by the SEC on Friday, allowing him to use it to take any private startup or company public, and he could target X.
Dogecoin is one of Elon Musk’s favourite cryptocurrencies alongside Bitcoin—some even say he loves DOGE more. So, when reports about his company X, formerly Twitter, going public surfaced, the Dogecoin community was expectedly excited and analysts are clamouring to predict how high the potential deal could push the crypto’s price.
In an interview this week American hedge fund billionaire Bill Ackman spoke to the Wall Street Journal about the latest development in his empire. The most significant might be SPARC, a new investment vehicle by his hedge fund firm Pershing Square Capital Management, which received the SEC’s green light this week.
SPARC is an elevation of the special purpose acquisition vehicle (SPAC) model; while SPAC mobilizes money and then seeks out an investment, SPARC identifies the opportunity and then solicits investment. The “R” in SPARC stands for “rights”, signalling that the investors don’t have to invest at first.
Responding to a question by the WSJ on whether he would consider merging his SPARC with X to take the company public again, his answer was “Absolutely.”
While the headline is exciting, a deal with X would not be easy. Since Musk took over, the company’s advertising revenue has dipped significantly. Musk says that his approach that targets maximizing the right to expression has scared away some of X’s clients.
There’s also the ‘small’ matter of $13 billion in debt that the company accrued since the takeover. While this has scared off many investors, Ackman sees the potential partnership as a great opportunity to infuse the cash into X and help it clear its debts. Additionally, Musk has only owned the company for just over a year and he remains committed to moulding it to fit his idea, and this could take a few more years.
However, Ackman says he holds “enormous respect” for Musk and didn’t rule out a deal with the Tesla and SpaceX CEO. He has continuously defended Musk on social media platforms and in interviews over major issues, including his alleged antisemitism.
But perhaps the most important factor for a possible partnership is that Ackman’s foundation was among the companies that invested in Musk’s takeover of Twitter.
X IPO Could Supercharge Dogecoin
The Dogecoin community is excited about what an X IPO could mean for the token’s price. Musk is a great supporter of DOGE and has been deeply involved in community matters. There are some reports—which cite on-chain evidence—that suggest Musk is the biggest DOGE holder with over 41 billion coins.
Historically, Musk’s moves and sometimes even parodic stunts have pushed the price of DOGE to new heights. The most prominent was in early April this year when he replaced the Twitter logo with a shiba inu dog, which is Dogecoin’s logo. This led to a 30% instant price spike for DOGE.
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