Power & Digital Infrastructure Acquisition Corp. Warrants: Shareholders Approval In 4Q 2021 Will Unlock Significant Upside

KGR Ventures
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Summary

  • SPAC Power & Digital Infrastructure Acquisition Corp. warrants underperformed its peers even after announcing its potential merger with Core Scientific Holding Inc., a leading crypto mining and hosting company.
  • China’s full blown ban on crypto mining and trading is an unprecedented blessing for crypto miners and hosters in North America, including Core Scientific Holding Inc.
  • The SPAC deal is expected to be approved by the shareholders of Power & Digital Infrastructure Acquisition Corp. in Q4 which could be the immediate catalyst to close the valuation.
  • Warrants of Power & Digital Infrastructure Acquisition Corp. could have 2-3x upside. If the potential merger is called off and no new deal is executed, the warrants could expire worthless as provided in the SPAC terms.
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Investment Thesis

Power & Digital Infrastructure Acquisition Corp. (XPDI) had traded at a significantly lower multiple than its peers after the company announced its proposed merger with the leading Bitcoin (BTC-USD) mining and hosting company Core Scientific Holding Co. on

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Sharing ideas on warrants, capital structure arbitrage and event driven opportunities. Not financial advice. Quick comments and updates are posted from time to time on Twitter www.twitter.com/BuffetWarrant.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of XPDIW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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