'Pennies: Going In Raw' Talk Bitcoin's Surge, SPAC Opportunities

"Pennies: Going in Raw" is one of the most popular finance and investment themed podcasts. On Monday, hosts Hughe Henne and Dan Deity talked about Bitcoin's rise to new highs and SPAC opportunities.

Bitcoin's Two Catalysts: Bitcoin's rise to new all-time highs was aided by two stock market-related catalysts, Henne said.

First, as soon as the short squeeze fiasco involving GameStop Corp. GME and other heavily shorted names came to a halt, investors would be looking to park their money in bitcoin, along with cannabis stocks.

Bitcoin's rally was also fueled in part by Tesla Inc's TSLA announcement it not only bought $1.5 billion worth of bitcoin but would accept the digital currency as a form of payment.

"Do I think that Elon Musk and Tesla had something to do with the bitcoin rally?" Henne asked. "For sure, no doubt about it."

SPAC Trends: The trend of SPAC deals continues to gain momentum but taking a look back at deals closed in recent months signals some investor frustration, Deity said.

See also: How to Invest in SPACs How to Invest in SPACs

Mortgage company UWM Holdings Corp UWMC, for example, is trading near its all-time lows and medicare insurance startup Clover Health Investments Corp CLOV was the target of a Hindenburg Research short report.

This shouldn't detract from the opportunities that SPAC deals can provide to investors. A lot of deals take place at-value or even at a price that undervalues the target company, Henne said. But this isn't reason enough to jump into a SPAC as investors need to think about their game plan and strategy.

"If it doesn't have a catalyst, and the only catalyst is undervalued, you need to ask yourself what is the legitimate, real timeline of this SPAC," Henne said.

Benzinga is a sponsor of "Pennies: Going In Raw."