Executive Summary / Key Takeaways

• Siddhi Acquisition Corp. (NASDAQ:SDHI) operates as a blank check company, or SPAC, with the singular objective of merging with a high-growth technology business, particularly in areas like AI and data centers, within a defined "Completion Window".
• The company's financial performance reflects its pre-operational status, with recent net income driven solely by interest earned on its substantial Trust Account, which held $283.24 million as of September 30, 2025.
• SDHI's competitive edge lies in its agility and access to capital markets, offering a streamlined path to public markets for potential target companies, contrasting with the deep operational and technological moats of industry giants like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL).
• Significant risks include the inherent uncertainty of completing a suitable business combination within the timeframe, potential geopolitical disruptions impacting target identification, and the possibility of rights expiring worthless if a merger is not consummated.
• The investment thesis hinges entirely on SDHI's management successfully identifying and executing a value-accretive merger, transforming it from a cash shell into an operating technology entity.

The Blank Check's Blueprint: A Strategic Play in a Dynamic Tech Landscape

Siddhi Acquisition Corp. (SDHI) was established on July 5, 2024, as a Cayman Islands exempted corporation with a clear, singular mandate: to identify and execute a business combination with one or more target businesses. Operating as a Special Purpose Acquisition Company (SPAC), SDHI does not possess its own operational assets or generate revenue from business activities. Instead, its value proposition and strategic focus revolve entirely around its ability to find and merge with a promising company, offering that target a potentially faster route to public markets than a traditional Initial Public Offering.

The company's journey began with its Initial Public Offering (IPO) on April 2, 2025, where it successfully sold 27.60 million units at $10 per unit, including the full exercise of the underwriters' over-allotment option. Concurrently, 338,000 private placement units were sold to its sponsor, Siddhi Sponsor LLC, generating an additional $3.38 million. These transactions resulted in a substantial $277.38 million being placed into a Trust Account, earmarked primarily for the future business combination. As of September 30, 2025, this Trust Account had grown to $283.24 million, benefiting from approximately $5.86 million in interest income derived from investments in U.S. Treasury Bills.

SDHI's strategic intent is to acquire a business with a fair market value equal to at least 80% of the net balance in its Trust Account at the time of signing a definitive agreement. The post-combination entity must also secure 50% or more of the target's outstanding voting securities or a controlling interest sufficient to avoid registration as an investment company. This structured approach positions SDHI as a financial vehicle designed to unlock value by bringing a private company into the public domain.

Technological Edge by Proxy: SDHI's Acquisition-Focused Differentiation

As a blank check company, Siddhi Acquisition Corp. does not develop or possess its own proprietary technology, nor does it engage in research and development initiatives. Its technological differentiation is therefore indirect, stemming from its strategic mandate to acquire a company that does possess such advantages, particularly in high-growth sectors like artificial intelligence (AI) and data centers. The competitive landscape analysis highlights that SDHI is actively seeking opportunities in these areas, which are currently experiencing significant investment and innovation.

SDHI's core "differentiator" in this context is its business model itself: it offers a streamlined and potentially accelerated pathway for a private, technologically advanced company to access public capital markets. This can be a significant benefit for a target company seeking liquidity or growth capital without the extensive and often lengthy traditional IPO process. For investors, the "so what" of this approach is clear: an investment in SDHI is a bet on management's ability to identify and successfully integrate a company with a compelling technological moat, thereby gaining exposure to that technology and its associated market potential. The success of this strategy will depend on the target company's ability to deliver tangible, quantifiable benefits through its technology, such as superior efficiency, cost advantages, or market leadership in its niche.

Financial Footprint: A Snapshot of a Company in Search

Siddhi Acquisition Corp.'s financial statements reflect its unique position as a pre-operating entity. For the three months ended September 30, 2025, the company reported a net income of $2.84 million. This income was primarily generated from $3.00 million in interest earned on the investments held in its Trust Account, partially offset by $154,297 in general and administrative costs. However, looking at the nine months ended September 30, 2025, SDHI recorded a net loss of $2.81 million. This larger loss was a result of total general and administrative costs amounting to $8.67 million, which outpaced the $5.86 million in interest income from the Trust Account during that period.

The company's liquidity and capital resources are robust, primarily due to the proceeds from its IPO. As of September 30, 2025, SDHI held $283.24 million in its Trust Account, predominantly invested in U.S. Treasury Bills. Outside the Trust Account, the company had $759,129 in cash and a working capital of $754,209. These funds are designated for identifying and evaluating potential target businesses, conducting due diligence, and covering transaction costs associated with a business combination. Management has indicated that it believes it possesses sufficient funds to cover its operating expenditures for the next year. However, the company also acknowledges that if the actual costs of identifying and negotiating a business combination exceed estimates, additional financing may be required.

Contractual obligations include a monthly administrative support fee of $15,000 payable to Siddhi Capital Holdings, which commenced on March 31, 2025. Furthermore, a deferred underwriting discount of $8.28 million and an advisory fee of $8.28 million are payable to Santander (SAN) upon the successful completion of the initial business combination, with the advisory fee deemed earned as of September 30, 2025.

Competitive Arena: Agility Against Giants

SDHI operates in a highly competitive environment, not in terms of product or service offerings, but in the pursuit of attractive acquisition targets. Its direct competitors are other SPACs vying for similar technology companies. However, the broader competitive landscape includes established technology giants like Amazon, Microsoft, and Google, which, while not direct SPAC competitors, significantly influence the market for technology innovation and M&A.

Compared to these behemoths, SDHI's competitive advantages are rooted in its agility and specialized focus on deal-making. It offers a potentially faster and more capital-efficient route to public markets for target companies, a proposition that large, organically growing tech firms cannot replicate. For instance, SDHI's ability to execute a merger swiftly can be particularly appealing to emerging technology firms seeking rapid access to capital and public market visibility. This contrasts with the extensive internal development cycles and strategic acquisition processes of companies like Microsoft, which, while possessing materially more comprehensive AI and cloud solutions, may not offer the same speed to market for a private entity.

However, SDHI faces significant competitive disadvantages. It lacks the operational scale, vast technological ecosystems, and deep research and development budgets of companies like Amazon and Google. These industry leaders boast superior profitability, cash flow generation, and R&D investment, enabling them to innovate at a pace SDHI, as a pre-operational entity, cannot match. For example, Google's advanced AI capabilities deliver significantly higher efficiency in data processing, a domain SDHI aims to enter through acquisition but cannot build itself. SDHI's financial health, characterized by non-operating income and reliance on its Trust Account, is inherently weaker than the robust, diversified revenue streams and strong margins of its indirect competitors. Its market share, currently non-existent in terms of operational revenue, is modest in the SPAC market.

The broader industry trends, particularly the boom in AI and data centers, present both opportunities and challenges. While SDHI seeks to capitalize on these trends through acquisition, the sheer scale of investment and innovation by companies like Microsoft in AI data centers could enhance their comparative financial outlook and growth prospects, potentially outpacing SDHI's ability to secure equally impactful targets. Customer and supplier dynamics, such as power constraints for data centers, could also impact the cost structures and operational resilience of potential targets, thereby affecting SDHI's acquisition strategy.

Conclusion

Siddhi Acquisition Corp. stands at a pivotal juncture, embodying the high-stakes nature of SPAC investing. Its investment thesis is a clear, yet challenging, narrative of transformation: from a cash-rich shell to a dynamic technology enterprise through a successful business combination. The company's financial health, while currently stable due to its Trust Account, is merely a placeholder for its future potential. Its strategic agility and access to capital markets are its primary tools in a competitive landscape dominated by tech giants with established operational and technological moats.

The path forward for SDHI is fraught with the inherent uncertainties of identifying a suitable, value-accretive target within its "Completion Window" and navigating a volatile global market. The success of this quest will hinge on management's ability to leverage its deal-making expertise to secure a technologically differentiated company, thereby translating its substantial capital into a compelling growth story. For discerning investors, SDHI represents a speculative opportunity, where the potential for significant upside is directly tied to the successful execution of its singular mission. The coming months will be critical in determining whether SDHI can fulfill its promise and emerge as a significant player in the technology landscape.