SPAC trading has definitely had its ups and downs over the last few months and this week we hit not one, but two SPAC milestones. There are now over 500 active SPACs in the market, and we have surpassed the 248 in total launched in 2020 in less than 3 months. This means there is over $150 billion in trust looking for the best private company to bring public.
We are now in the midst of one of the most competitive markets of all time and due diligence is becoming more and more important. Not every SPAC pops up 10%-20% or even more on announcement anymore and in fact, many are trading below their $10 redemption value after announcing mergers with companies that are not offering enough future value.
I’m always looking at technologies that are going to shape our future and when dMY Technology Group Inc. III (NYSE: DMYI) recently announced they would be merging with IonQ, I was immediately interested as this company is looking at one of the next revolutionary technologies in history.
Outside of Google, IBM, and some of the largest companies on earth, you don’t hear about quantum computing, and for good reason, it’s extremely complicated. It is an entirely new form of computing changing the way data is stored and accessed, but if done correctly, could help solve some of the world’s most complex problems include drug discovery and artificial intelligence.
This is all part of the reason, why this small company is so exciting.
IonQ is led by Peter Chapman who started his career at the MIT AI Lab and was the Director of Engineering for Amazon Prime. From there, you have a Chief Scientist that developed some of the fundamentals of quantum computing at NIST, a CTO that led the Bell Labs team to break the world record for the largest optical switch.
You also have a VP of Software that built and led the quantum software team at Google. Not only is there great management, but they are also backed by Samsung, Amazon, Google Ventures, Lockheed Martin, and even Mubadala.
This team has decades of experience in quantum computing and IonQ is looking to build the world’s best quantum computers. Amazingly, this small team is already ahead of the pack and has produced the first and only quantum computer available via the cloud on both Amazon AWS and Microsoft Azure.
Machine learning can only go so far with the current state of computing. For example, machine learning techniques have been used to achieve a 40% reduction in energy used for cooling Google’s datacenters, but they still consume $500 million per year in energy.
Even a modest improvement using a quantum computer to improve performance could cut significant expenses. It can also be used to discover better battery materials for electric vehicles, optimize logistics, and even improve solar energy production. The use cases are almost unlimited.
While we are still very early in this industry, it is poised for rapid growth over the next decade.
The company is forecasting revenue of $5 million for 2021 and 15 million in 2022, but the market opportunity is absolutely enormous with a TAM of $65B. The company expects to see revenue ramp up in 2025 with an estimate of $237 million, over 4500% higher than this year, and through 2026 they expect to have a CAGR of 150%
There is a real opportunity here. According to Gartner, by 2023, 20% of global organizations are expected to budget for quantum-computing products, up from under 1% in 2018. With IonQ’s current lead, they could be set to capture a big part of this market.
While there is definitely risk involved with a company making very little revenue, an enterprise value at $1.377 billion leaves plenty of room for growth if they can capitalize on this new market. I expect there to be some volatility in the price given how early this technology is, but any buy near trust value could be worthwhile given it is trading down over 20% from its peak.
And then, you can boost your potential for gains even further by investing in another novel asset class that is deeply connected to technology. I’m talking about the cutting-edge world of cryptocurrency.
With the computing that allows cryptocurrency to exist being such an indispensable part of the modern high-tech economy and novel forms of investment carrying so much potential for outsized profits, the potential has never been greater.
And I’m not just talking about well-known examples like Bitcoin. These are the more unknown cryptocurrencies, or “microcurrencies,” and some of them have outperformed Bitcoin by more than 100 times across a 30-day span.
The thing is, they’re not finished yet. Now, they have the potential to multiply your money too. We can tell you exactly which ones to buy to maximize your chances. All you have to do is click here to get started.