M3-Brigade Shares Fall on Merger With ReserveOne

By Nicholas G. Miller

Shares of special purpose acquisition company M3-Brigade fell after it agreed to merge with ReserveOne to form a digital asset management firm.

M3-Brigade shares fell 6.7% to $10.88 on Tuesday, but are still up 8.7% year to date.

ReserveOne said the new firm will hold and manage bitcoin, in addition to other cryptocurrencies including Ethereum and Solana. ReserveOne said the firm was inspired by the U.S. Strategic Bitcoin Reserve and Digital Asset Stockpile, a federal cryptocurrency reserve established by President Trump through a March executive order.

The company will be led by Chief Executive Officer Jaime Leverton, the former CEO of Hut 8, the first public company to hold bitcoin.

ReserveOne said the merger with M3-Brigade is expected to generate more than $1 billion in gross proceeds, including $297.7 million held in M3-Brigade's trust account and an aggregate of $750 million from leading institutional investors.

The deal is expected to close in the fourth quarter.

Write to Nicholas G. Miller at nicholas.miller@wsj.com