One year ago, investors were watching special purpose acquisition companies (SPACs) carefully. Companies such as Clover Health (NASDAQ:CLOV) and ChargePoint (NYSE:CHPT) helped set the stage for months of merger mania. Then, former President Donald Trump announced that his newest media venture would be going public via reverse merger, sending Digital World Acquisition (NASDAQ:DWAC) stock through the roof. While DWAC has eclipsed most SPAC coverage since then, there are plenty of other SPACs to watch as a new year takes shape.
As experts search for the defining market trends of 2022, a new SPAC bubble is already forming.
Prominent companies in the tech and crypto mining sectors are planning SPAC mergers. Last year’s trend of pet care companies going public is also set to continue. We recently saw the successful debut of Black Rifle Coffee (NYSE:BRCC), a veteran owned business with a dedicated fan base, through a SPAC merger.
What exciting debuts are on the horizon? Let’s take a look at the upcoming SPACs that investors should be watching now.
- Angel Pond (NYSE:POND)
- Arisz Acquisition (NASDAQ:ARIZ)
- CF Acquisition VI (NASDAQ:CFVI)
- CHW Acquisition (NASDAQ:CHWA)
- DPCM Capital (NYSE:XPOA)
SPACs to Watch: Angel Pond (POND)
This month began with the announcement that Angel Pond is merging with MariaDB to take the database innovator public.
The company provides one of the most popular open-source relational databases and is a fork of MySQL. It claims that the cost-effective and simplistic nature of its platform enables companies to reinvest in growth, innovation and customer-facing applications. Its client list includes Deutsche Bank (NYSE:DB), Verizon (NYSE:VZ) and Walgreens (NASDAQ:WBA), to name just a few. In fact, the firm claims that 75% of Fortune 500 companies run its server.
Maria’s blank-check partner was formed by former Alibaba (NYSE:BABA) executive Simon Xie and former Goldman Sachs (NYSE:GS) partner Theodore Wang. According to U.S. Securities and Exchange Commission (SEC) filings, MariaDB’s reported revenue for 2021 was $37.4 million, demonstrating 13% growth.
A SPAC merger may not be a traditional approach for a firm in MariaDB’s space. The company has significant potential for growth, though, and it could easily be among the SPAC winners of 2022.
Arisz Acquisition (ARIZ)
It’s a complicated time for the world of crypto mining, thanks to regulatory threats and energy-use concerns. But Arisz Acquisition doesn’t seem daunted by this reality.
Late in January, it confirmed that it entered into an agreement to merge with BitFuFu. The digital asset miner was founded in 2020 by core members of the Bitmain Technologies. When the merger closes, BitFuFu will trade on the Nasdaq under the symbol FUFU.
BitFuFu is a new company, which may make some investors nervous. Even so, the company is absolutely worth watching as it prepares to go public. As of Jan. 22, the companies had secured $70 million in private investment in public equity (PIPE) financing with the price of $10 per share. According to an official statement, the crypto miner forecasts $330 million in revenue for 2022. Should this prove accurate, it will represent year-over-year (YOY) growth of 230%.
SPACs to Watch: CF Acquisition VI (CFVI)
The best-known name on this list of SPACs to watch is CF Acquisition VI. The blank-check company is the acquisition partner of Rumble, a Canadian video-sharing service that aspires to become the YouTube of American conservatives.
Its focus on free speech and anti-censorship policies have garnered a significant following. The platform has also been endorsed by Kentucky Sen. Rand Paul, which helped elevate share prices. Not only does Donald Trump have his own channel on Rumble, but the company has signed on as an official partner of Truth Social.
Truth Social is still in development, but Rumble seems to be able to stand on its own. It includes content from many prominent pundits such as Dinesh D’Souza and Charlie Kirk, as well as Newsmax TV. Since its merger announcement, this SPAC has been among the most popular Trump-related trades.
Still need convincing? InvestorPlace contributor David Moadel recently noted that the company’s user engagement statistics should make CFVI stock an appealing investment.
CHW Acquisition (CHWA)
Last year was a big year for companies in the pet products space, with Americans adopting cats and dogs in the response to the pandemic.
Now CHW Acquisition is merging with another big name in this industry. It announced earlier in February that it was merging with Wag Labs, the founder of popular dog-walking app Wag! Bloomberg reported that the combined value of the two companies will be roughly $350 million.
The new company will be named Wag! Group and will trade on the Nasdaq under the symbol PET. Investors in the deal so far include Battery Ventures, ACME Capital and General Catalyst as well as Tenaya Capital.
Not only a dog-walking app, Wag includes pet sitting and training services. And for investors, there is a lot to like. According to a study, the U.S. pet care market will grow by roughly $50 billion by 2025. We know that Americans love their pets, and that seems like a great reason to keep CHWA stock on a list of SPACs to watch for 2022.
SPACs to Watch: DPCM Capital (XPOA)
The second quarter of 2022 will bring another exciting tech merger. Canadian quantum computing company D-Wave Systems has announced that it plans to come public through blank-check firm DPCM Capital.
When the merger closes, D-Wave will trade as QBTS on the New York Stock Exchange. Its investors include Jeff Bezos, and its client list includes NASA. It is clear why this is on a list of SPACs to watch: D-wave was founded in 1999 and has had years to earn its reputation as a leader in quantum computing.
Investors should keep a close eye on XPOA stock. The combined company will have a valuation of roughly $1.2 billion.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
