That’s Chamath Palihapitiya’s message to those who may lose money if they invest in his new project, a blank-check company looking to raise $250 million to acquire businesses in decentralised finance, artificial intelligence, and other sectors.
The investor and host of the Silicon Valley-focused podcast All-In offered that comment as he announced the creation of his new Cayman Islands-based company.
It will be called American Exceptionalism Acquisition Corp. A, according to a document filed with the Securities and Exchange Commission on Monday.
“Without doubt, the investment will entail substantial risk including the possibility of total loss,” Palihapitiya wrote in a “founder letter” in the filing.
“This investment is most suitable for institutional investors, and retail investors should approach with caution, if at all,” he added. “If they do lose their entire capital, they will embody the adage from President Trump that there can be ‘no crying in the casino.'”
The investment comes amidst positive momentum in the crypto market. Analysts repeatedly predict Bitcoin and altcoins will hit price peaks never seen before later this year. And with those forecasts, entrepreneurs have come out of the woodwork to cash in with everything from stablecoin ventures to crypto treasuries.
Here’s the plan, as Palihapitiya laid it out in the filing. The company will sell 25 million shares for $10 apiece and seek registration on the New York Stock Exchange under the ticker AEXA. Palihapitiya expects the firm to spend 3.1%, or $7.7 million, on underwriting commissions.
“The biggest gains in the future will come from companies that are involved in fixing the fundamental risks that come from our interconnected global order while reinforcing American exceptionalism,” Palihapitiya wrote.
American Exceptionalism will target companies in four areas, according to the letter: energy production, AI, DeFi, and defence.
“Traditional finance is defined by the power of incumbency, with large banks and lenders serving a dominant role in our economy,” Palihapitiya wrote.
“However, decentralised finance and cryptocurrency is no longer simply on the sidelines. As these new companies scale, I believe they will revolutionise multiple financial products — including international payments, smart contracts and supply chain transparency.”
