SPAC mergers featuring a privately held firm and a blank check company have increased in popularity over the past few months as companies look to raise money through public markets.
Sports trading card company Topps has joined the fray with its $1.3 billion SPAC merger with Mudrick Capital. Topps is expected to shift its business focus to another investment tool that has become popular in 2021: non-fungible tokens.
Topps reported $567 million in total sales in 2020. While that number is a 23% increase from the revenue it reported in 2019, compare that to Dapper Labs’ NBA Top Shot brand which registered $500 million in NFT sales in just its first 10 months, and you see why the shift towards NFT’s is attractive.
Only 6% of Topps revenue came from NFTs in 2020. Industry watchers expect that number to jump in 2021.