The latest news in the blank-check space promises to change the way we think about computers. dMY Technology III (NYSE:DMYI) announced it wants to bring quantum computing firm IonQ public. DMYI stock may be lagging today, but investors should pay attention. Here is what you should know about the IonQ SPAC merger now.
As a quick recap, dMY Technology III is the third SPAC from duo Niccolo de Masi and Harry You. IonQ, the targeted firm, considers itself a pure play on quantum computing. If the merger goes through, it would be the first publicly traded pure play.
With that in mind, here is what you should know about DMYI stock and the IonQ SPAC merger now:
- DMYI stock first started trading in November 2020.
- Its initial public offering raised $275 million by offering 27.5 million units at $10.
- This SPAC follows two other dMY blank-check companies bringing Rush Street (NYSE:RSI) and Genius Sports (NYSE:DMYD) public.
- de Masi and You initially said they wanted to focus on companies that deal with consumer apps.
- However, they also identified artificial intelligence, machine learning and quantum computing as areas of interest.
- Given this, the IonQ SPAC merger news makes sense.
- The company is currently working to develop a quantum computing machine the size of an Xbox.
- This device should be completed by 2023, although about 20 million software developers already have access to its early stage device.
- IonQ says its device is unique because it runs on clouds from Amazon (NADSAQ:AMZN) and Microsoft (NASDAQ:MSFT).
- The IonQ SPAC merger will result in $650 million of gross proceeds.
- Investors should note that the pro-forma enterprise value of the combined company is $2 billion.
- IonQ will trade on the New York Stock Exchange under ticker IONQ.
DMYI Stock and the IonQ SPAC Merger
So what else should you know about DMYI stock and the IonQ SPAC merger? Why should investors be paying attention to this potential deal?
Everything comes back to the potential of quantum computing. IonQ would be a first as a pure play on the fantastical tech in the public markets, and it follows growing mainstream interest. Only 1% of businesses in 2018 were budgeting for quantum projects. By 2023, that figure will be 20%. This is because of what quantum computing promises to do. Changing the way we look at and process information, experts hope to use these computers to help cure diseases and speed up financial calculations, among other things.
Right now, there is no scalable, commercial-grade quantum computer available. IonQ wants to change that, and make its devices more accessible. One way it plans to do this is to remove supercooling requirements.
So with this exciting promise, why is DMYI stock down today?
One reason could be that IonQ faces competition from tech giants Amazon, International Business Machines (NYSE:IBM) and Microsoft. Another explanation is that the Nasdaq is still suffering today. Many tech names are in the red, which could be weighing on DMYI stock.
Keep this story on your radar.
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.