[phamilton]

Isn't this just a SPAC?

The shoe business was sold, a shell of a public company was left, and it essentially acquired a brand new company focused on AI.

[AFF87]

That is probably still bad enough too. The SPAC era of 2020 and 2021 was not great [1] and SPACs are normally not the best vehicles [2]

[1]https://certuity.com/insights/what-happened-to-spacs/ [2]https://mergersandinquisitions.com/spac-vs-ipo/

[benj111]

That isn't how I read the article?

But then a company whose only asset is it has a listing should be able to go up by 580% doing not very much.

[phamilton]

The announcement was that it secured $50M in financing, sold the shoes business for $39M leaving $20M or so in cash.

An empty public company with $70M in financing to enter a hyped market was valued at $115M. The stated intent is to spend their money on a CapEx item with a fairly high demand and resale value (GPUs) in a sector that has a pretty simple playbook.

The 580% bump is a fun headline, but "startup secures $50M in funding at a 5.8x valuation bump" isn't unheard of.

Have I invested? No. Is this a ridiculously funny narrative and story? Absolutely. Is it the most ridiculous valuation I've seen? No.

[pseudohadamard]

Yup, that's exactly what it is.