Star Peak Energy Transition Corp( STPK Stock) News soars by 70% amid SPAC merger with Stem
- NYSE: STPK has surged by 69.09% on Friday after long days of steady trading.
- Star Peak Energy Transition Corp announced it is merging with Stem to make the latter firm public.
- Stem´s battery technologies draw high interest which could further boost share prices.
First storage, then delivery – Star Peak Energy Transition Corp (NYSE: STPK) first raised funds as a blank check company, and some four months later, it is delivering on its promise. The Illinois-based shell company announced a Special Purpose Acquisition Company (SPAC) merger with Stem, which is an energy company.
Stem, founded back in 2009, focuses on battery storage and optimization – the latter using Athena, an artificial intelligence platform that is used to forecast energy demand. By correctly optimizing battery utilization, it lowers costs for those using its batteries.
STPK originally raised $350 million in its IPO and the deal includes investments from Van Eck and Blackrock to reach a total of $608 million. The valuation of the merged firm will be around $1.35 billion – above the stock's current market capitalization of around $815 million.
STPK stock forecast
NASDAQ: STPK leaped by 69.09% on Friday to close at $17.01 after changing hands around $10 for a long period. Monday's premarket trading is pointing to a drop of around 7% or $1.21 – a much-needed profit-taking move. However, the intended higher valuation for the energy company provides hopes for additional gains.
Star Peak Energy Transition's sector is experiencing high interest and growth which has further grown after Joe Biden was elected President. The former Vice-President has vowed to push environmentally-friendly policies and nominated former Secretary of State John Kerry as a climate czar. If Democrats win control of the Senate, they will likely push for a $2 trillion investment toward the climate crisis, with some funds potentially trickling toward STPK.
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
