Today we cover $RDBX, $BKKT, $FPAC, and more…
SPAC interest is seeing a rebound after many months of decline, as $DWAC pulls more investors into the mix. In today’s Dish, we look at the rally in what the street is already calling ‘the perfect meme stock’. Also, as crypto slowly takes over the world, a few SPACs are set to benefit from the renewed investor enthusiasm. Read on to find the latest on all things SPACs.
SPACs to Watch Today
Redbox shares made a strong debut after a SPAC merger with Oakbrook Terrace III with shares closing up more than 23%.
The momentum in the stock is expected to continue today as shares are already up over 90% pre-market (close to $25). Redbox is perfectly poised to take advantage of the current SPAC market, especially with the influx of new investors as a result of $DWAC. RDBX also possesses all the characteristics of a meme stock, with a low float (2 million shares tradable), nostalgic like other meme stocks prior to it (think GME and AMC), and focused on a digital turnaround (introducing late digital adopters to a streaming platform).
The digital focus is something that will determine the long-term value of the stock, as RDBX has made several agreements to improve the platform prior to closing the deal. The company entered into a multiyear distribution deal with Lionsgate to distribute Redbox Entertainment titles, expanded the distribution footprint for its streaming app to the PlayStation 5 console, and signed a promotional agreement with Roku to attract multi-platform users to the Redbox streaming app.
The company also announced that it would add 20 free ad-supported television channels to its streaming service and reached a distribution agreement with Vewd to preload the Redbox streaming app on new and existing Vewd-powered TVs and set-top boxes in the U.S.
In addition to the growing digital segment, RDBX is one of the last physical media platforms and can potentially capitalize on a niche market. With the DVD market winding down in the U.S. (Amazon and small businesses still sell DVDs) and the streaming market being increasingly fragmented, RDBX has an opportunity to fill the void for customers looking to rent cheap movies.
Digital Asset platform Bakkt saw its shares triple after announcing a partnership with Mastercard to issue branded crypto debit and credit cards.
The digital assets held by customers will be supported through custodial wallets from Bakkt. Customers of Mastercard will also be able to earn and spend reward points in cryptocurrency, potentially opening the door to convert reward points into crypto. Shortly after the Mastercard partnership was announced, Bakkt also announced a similar partnership with global payments provider Fiserv.
Fiserv announced that Bakkt will be integrated into its Carat omnichannel ecosystem, which should enable more options for B2B and B2C cryptocurrency payouts, loyalty programs, and transactions. Shares of Bakkt surged and end ended the day on a 234% gain (closed at $30.6), with the stock expected to carry momentum today (shares are already up 60% pre-market).
Far Peak Acquisition Corp, which is set to merge with crypto exchange bullish, may follow $BKKT with a rally of its own today. Bullish was launched by Block.one, a blockchain software company backed by Peter Theil and Hedge Fund managers Alan Howard and Louis Bacon.
Other backers include Hong Kong tycoon Richard Li and German entrepreneur Christian Angermayer, who capitalized Bullish with a liquidity pool of around $10 billion in digital assets and cash. The company’s valuation should see a revision, considering Bitcoin and other Cryptocurrencies have more than doubled since the deal announcement.
EV Battery maker SES Holdings, which is set to merge with Ivanhoe Capital Acquisition Corp. in a $3.6 billion deal, has just announced that it will announce the world’s largest Li-Metal battery along with plans for the world’s largest Li-Metal battery production facility at the inaugural Battery World US.