Thursday’s SPAC Opportunities: Is SPAC + Crypto Next? Another Good Deal Pop Shows a Healthier SPAC Market

Another light SPAC day yesterday as there was only one morning merger announcement with BCTG Acquisition Corp (BCTG) taking Tango Therapeutics public in a $350M deal and then a rare late afternoon announcement from Roth CH Acquisition II (ROCC) who is taking music company Reservoir public in a $788M deal.

BCTG was well received popping 7.94% through the close and up another 1.65% in after hours trading. ROCC announced after the close so we won’t really know how the market feels until sometime this morning. It closed the day at $9.96 so has to break NAV before anyone gets very excited.

Retail Left Holding the Virgin Galactic (SPCE) Bag?

Virgin Galactic (SPCE) is trading over 4% lower in pre-market as news broke that Richard Branson (who founded Virgin Galactic / SPCE) sold over $150M in stock over the past three days. The shares were sold via a 10b5-1 Plan — a pre-planned selling arrangement for execs that is supposed to remove questions around insider buying/selling motivations — but the market may not care.

Investors may feel especially aggrieved as the pitch forks had already come out en masse for SPCE Chairman Chamath Palihapitiya. Palihapitiya sold about 6.2 million SPCE shares for $213M and many in the market were quick to rail against the perceived ability for SPAC participants to quickly and profitably exit post de-SPAC. In an effort to manage the fall out he told investors that the purpose was “to help manage liquidity as I fund several new projects starting in 2021.”

For those interested, we took a look at Chamath Palihapitiya’s SPAC history here.

Crypto, Bitcoin, & SPACsCoinbase’s (COIN) direct listing dominated the market news yesterday and, at one point, eclipsed $100B in market capitalization for the cryptocurrency exchange. If those calling it the ultimate legitimization of Cryptocurrency into the mainstream are right, it could have implications for SPACs. There are around 430 SPACs looking for deals and it is inevitable that if the cryptocurrency / bitcoin narrative has now hit the mainstream — in the same way that electric vehicles did — that we’ll start to see more cryptocurrency/bitcoin SPAC deals in the near future.

One existing deal SPAC deal focused on crypto is VPC Impact Acquisition (VIH) which is taking Bakkt public in a deal announced in January. VIH took a big hit yesterday dropping over 12%. Some pre-market buyers are buying the dip (up ~0.5%), but it is light at this point.

More thoughts on Crypto, Bitcoin, & SPACs here.

SPAC Stock Ideas for Thursday

Recent SPAC IPOs Below NAV

-.6% ~ $ 9.94 | TBSA – TB SA Acquisition Corp-.6% ~ $ 9.94 | NGCA – NextGen Acquisition Corp. II-.5% ~ $ 9.95 | DISA – Disruptive Acquisition Corp I-.5% ~ $ 9.95 | CLAA – Colonnade Acquisition Corp. II-.5% ~ $ 9.95 | PTOC – Pine Technology Acquisition Corp.-.4% ~ $ 9.96 | KSIC – Kadem Sustainable Impact Corporation-.3% ~ $ 9.97 | OPA – Magnum Opus Acquisition Limited-.3% ~ $ 9.97 | ATSP – Archimedes Tech SPAC Partners Co-.3% ~ $ 9.97 | FRSG – First Reserve Sustainable Growth Corp-.2% ~ $ 9.98 | ESM – ESM Acquisition Corporation-.2% ~ $ 9.98 | GLSPT – Global SPAC Partners Co.-.2% ~ $ 9.98 | AGGR – Agile Growth Corp.-.1% ~ $ 9.99 | DHCA – DHC Acquisition Corp-.1% ~ $ 9.99 | TETC – Tech and Energy Transition Corporation-.1% ~ $ 9.99 | RXRA – RXR Acquisition Corp

Buy the Dip? Yesterday’s Biggest SPAC DeclinersAs noted above, VIH is taking Bakkt public and is focused on crypto — that’s a massive drop and for those excited by that narrative it could be an opportunity. Some other big declines yesterday including BOWX / WeWork which took a big hit coming further off its highs. Some early market investors seem to be coming in this morning as it is up about 1.5%. 

-12.11% ~ $ 13.28 | VIH – VPC Impact Acquisition Holdings (Announced)-8.12% ~ $ 12.45 | BOWX – BowX Acquisition Corp (Announced)-7.92% ~ $ 14.64 | RICE – Rice Acquisition Corp. (Announced)-7.07% ~ $ 11.69 | PSAC – Property Solutions Acquisition Corp (Announced)-6.07% ~ $ 14.40 | AGC – ALTIMETER GROWTH CORP (Announced)-5.49% ~ $ 12.90 | FTCV – FinTech Acquisition Corp. V (Announced)-5.20% ~ $ 10.40 | GWAC – Good Works Acquisition Corp (Announced)-5.19% ~ $ 16.06 | TPGY – TPG Pace Beneficial Finance Corp (Announced)-4.71% ~ $ 9.51 | VHAQ – Viveon Health Acquisition Corp. (Pre-Deal)-4.29% ~ $ 15.39 | RSVA – Rodgers Silicon Valley Acquisition Corp (Announced)-3.35% ~ $ 10.69 | SRAC – Stable Road Acquisition Corp. (Announced)-3.34% ~ $ 11.57 | THCB – Tuscan Holdings Corp. (Announced)-3.03% ~ $ 10.57 | HOL – Holicity Inc (Announced)

Buy the Dip? SPACs Most off their Highs (units)** SPACs with Announced Deals **

-65.3% ~ $ 23.64 | CCIV – Churchill Capital Corp IV-61.8% ~ $ 13.96 | THCB – Tuscan Holdings Corp.-60.6% ~ $ 12.59 | SRAC – Stable Road Acquisition Corp.-54.3% ~ $ 18.72 | NGA – NORTHERN GN ACQ-51.1% ~ $ 11.19 | HOL – Holicity Inc-50.4% ~ $ 12.84 | CAPA – HighCape Capital Acquisition Corp-48.7% ~ $ 45.64 | BRPA – Big Rock Partners Acquisition Corp-48.3% ~ $ 13.28 | CLII – Climate Change Crisis Real Impact I Acquisition Corp-47.4% ~ $ 15.60 | CMLF – CM Life Sciences Inc-47.2% ~ $ 13.78 | GHVI – Gores Holdings VI Inc

** Pre-Deal SPACs **

-40.4% ~ $ 11.52 | BTWN – Bridgetown Holdings Ltd-39.6% ~ $ 11.63 | IPOD – Social Capital Hedosophia Holdings Corp IV-35.0% ~ $ 10.40 | THCA – Tuscan Holdings Corp. II-34.9% ~ $ 11.23 | IPOF – Social Capital Hedosophia Holdings Corp VI-34.0% ~ $ 10.72 | ZNTE – Zanite Acquisition Corp.-32.4% ~ $ 10.60 | ALTU – Altitude Acquisition Corp.-31.4% ~ $ 11.28 | LEAP – Ribbit LEAP Ltd-29.9% ~ $ 10.50 | PIPP – Pine Island Acquisition Corp-29.6% ~ $ 11.30 | HAAC – Health Assurance Acquisition Corp

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