Another morning without merger confirmation for Churchill Capital IV (NYSE:CCIV) has arrived. However, that is not stopping CCIV stock from climbing. In fact, while investors wait for news of a Lucid Motors SPAC merger, there are two catalysts driving shares higher. Here is what you should know now.
The first thing to know is that investors continue to wait for Churchill Capital and Lucid Motors to seal the deal. Recent reports and interviews with company executives have sent sentiment back and forth, but hope remains. Helping that bullish optimism with CCIV stock is the serious potential of Lucid Motors to disrupt the electric vehicle market. Plus, close ties between the two companies also seems to bode well.
But without any news, what has CCIV stock up this morning?
The first part of the story comes from a U.S. Securities and Exchange Commission filing, the first from Churchill Capital since November 2020. In the filing, the blank-check company shared that Magnetar Capital held 17.98 million units as of Dec. 31, 2020. Based on a November update that CCIV stock had 207 million shares outstanding, this gives Magnetar an 8.69% stake.
To social media users, this is a positive sign that institutional investors are behind Churchill Capital. Investors should note that Magnetar has held this stake since December, prior to the Jan. 11 announcement from Bloomberg that Lucid and Churchill were in merger talks. However, the new filing sparks some hope that more is to come.
On a similar note, social media users are speculating about other moves in the realm of institutional investing. Citing screenshots of the Bloomberg terminal, they argue that venture capital firm Venrock Associates is looking to sell its stake in Lucid to Churchill. As Rohail Saleem wrote, Venrock is one of the oldest investors in Lucid Motors.
Why CCIV Stock Is Climbing Today
There is one other reason that bulls are bidding up CCIV stock today.
Michael Klein, the man behind Churchill Capital IV, has a few other special purpose acquisition companies in the works. According to another report from Bloomberg, Klein raised a total of $1.68 billion from his two latest deals. This comes as Churchill Capital VI (NYSE:CCVI) raised $480 million and Churchill Capital VII (NYSE:CVII) raised $1.2 billion. Both of these amounts are higher than previous IPO estimates.
What does this mean for investors? Perhaps nothing. Other blank-check company leaders like Chamath Palihapitiya manage multiple SPACs at a time. However, as Klein launches his sixth and seventh SPACs, some see it a sign he will be looking to wrap up talks for CCIV stock.
As a reminder, the situation right now with Churchill Capital and Lucid Motors remains speculative. However, there is a lot of excitement behind the potential deal and CCIV stock has a lot of influence. Keep an eye on this name, and on the latest news.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
