Mount Rainier Acquisition Corp. (RNERU) Stock

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Contributor, Benzinga
October 5, 2021
Vol / Avg.- / -Mkt Cap-
Day Range- - -52 Wk Range- - -

When most people hear the word blockchain, they immediately think about Bitcoin and other cryptocurrencies. Undoubtedly, the decentralized distributed public ledger — the fancy phrase used to define the underlying technology — has revolutionized the concept of virtual currencies and a decentralized economy. But speculation on various digital assets is only the tip of the iceberg for blockchain-related innovations.

In short, the blockchain theoretically imposes a framework of inevitability on intermediary-dependent industries, akin to an asteroid during the late Cretaceous period — the last time dinosaurs walked the earth. Indeed, many of the industries that the blockchain seeks to replace, such as attorneys and brokers, may be headed toward a permanent display at your local museum.

Such fanciful notions are now possible because blockchain applications don’t require human oversight. Instead, 2 parties agree to terms for a particular business dealing. From there, the immutable nature of the blockchain keeps a perfect record of all events, facilitating a consummation of the contract once both parties fulfill their individual obligations.

This groundbreaking innovation was the subject of the upcoming initial public offering (IPO) for Mount Rainier Acquisition Corp., making it a must-watch piece of speculation across the stock market. Remember, major acquisitions give you a chance to get in on the ground level before the merger, before the parent company brings its baggage along and causes price fluctuations. This could become your preferred stock, or these stock options might become items you watch until you’re ready to buy.

When Is the Mount Rainier Acquisition Corp. IPO Date?

The Mount Rainer Acquisition stock IPO’d on October 5, 2021 under the ticker symbol RNERU.

Mount Rainier Acquisition Corp. Financial History

Because of its structure as a shell company, if you acquire shares of RNERU stock, you’re not buying equity in a business like a traditional public offering. Instead, you are purchasing trust, trust that the SPAC’s sponsors will find an appropriate, viable enterprise with which to secure a merger deal.

As such, RNERU stock is essentially a blind date. You are trusting your friends to find a compatible person. But whether sparks fly or not, no guarantees exist. Therefore, the due diligence component of this investment category centers on the track record of the SPAC’s executive leadership team.

That said, Mount Rainier enjoys attributes that separate it from other purely speculative blank-check firms. Primarily, the company is seeking an organization with an aggregate enterprise value between $500 million and $2 billion. Put another way, the SPAC is not interested in a mom-and-pop operation.

Second and more importantly, Mount Rainier “intends to focus on established, technology focused businesses” per its press release. To be clear, the shell company could easily deviate from this stated plan. However, a deeper dive into its prospectus filed with the U.S. Securities and Exchange Commission (SEC) reveals that Mount Rainier’s executive team has experience with blockchain technologies.

Moreover, the financial technology of a fintech theme prevails throughout the prospectus. For instance, Mount Rainier’s CEO Matthew Kearney commands C-level experience in the fintech space, as does Young Cho, the SPAC’s CFO. As well, Christina Favilla, who will become a member of the board of directors following the consummation of this IPO, has advised various fintech companies.

Combined, you have a financially lucrative backdrop for RNERU stock. According to, the global blockchain industry will likely grow from a $3 billion valuation in 2020 to just under $40 billion by 2025, representing a compound annual growth rate of 67.3%.

For the fintech segment, industry experts project that it could hit a valuation of $161.2 billion, with artificial-intelligence-based solutions driving much of the total revenue. In terms of relevance, RNERU stock trades hands in the right arena.

Mount Rainier Acquisition Corp. Potential

Because of the volatile and unpredictable nature of SPAC-based IPOs, you generally want to invest in blank-check firms that feature executives with experience taking companies public via the reverse-merger approach. The good news is that RNERU stock is exactly that.

Chief executive Kearney previously was a member of the investor group of MI Acquisitions, which later combined with Priority Technology (NASDAQ: PRTH) in 2018. Unfortunately, the favorable part ends there. Though PRTH stock did close at $11.20 shortly after the disclosure of the merger target, the equity unit quickly tumbled.

At time of writing, PRTH is trading hands at $6.20, well off its initial offering price of $10. Still, past results do not guarantee future performance. And in this case, just because an earlier SPAC venture failed doesn’t mean the present one will.

What should give investors optimism toward RNERU stock is the relevance of blockchain technologies. For instance, McKinsey & Company estimates that “blockchain-based solutions for customer onboarding can create up to $1 billion of savings in operating costs for retail banks globally and reduce regulatory fines by $2 billion to $3 billion.”

Further, the research firm expects “blockchain solutions to reduce annual losses from fraud by $7 billion to $9 billion.” Given its immutable characteristics, the platform of focus behind Mount Rainier offers myriad accretive applications.

How to Buy Mount Rainier Acquisition Corp. (RNERU) Stock

While SPACs may not have an underlying business, they trade just like any other equity unit, a useful fact for those who already know how to buy stocks. If you don’t, just follow the simple steps below.

Step 1: Pick a brokerage.

While any brokerage will allow you to purchase SPACs, those who want to develop their traditional public market offering acumen should consider best brokers that offer pre-IPO access (or new issues at their initial price) for select enterprises.

Step 2: Decide how many shares you want.

Because of the unpredictable nature of SPACs, you should choose a balanced share count with RNERU stock to mitigate downside exposure.

Step 3: Choose your order type.

Before placing your first order, learn these market concepts.

  • Bid: The buyer’s best offer.
  • Ask: The seller’s lowest acceptable price.
  • Spread: The difference between the bid-ask price, the spread also denotes market risk as this is also the profit margin for market makers.
  • Limit order: Buy or sell requests at a specific price, limit orders provide transparency but no execution guarantees.
  • Market order: Market orders guarantee fulfillment but only at the current rate.
  • Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
  • Stop-limit order: Stop-limit orders only exit positions at a specified price, but they carry non-fulfillment risks.

Step 4: Execute your trade. 

Follow these steps to execute a market order:

  1. Select your action type (buy or sell).
  2. Enter the shares you want to acquire (or sell).
  3. Hit the Buy (or Sell) button.

Follow the same sequence for limit orders (but include your execution price).

A Stock Climbing the Summit

Given the blind bet nature of SPAC-based stocks, wagering on Mount Rainier presents significant risks. However, helping to offset some of the downside liability is the shell company’s focus on innovative tech solutions, including blockchain initiatives. Should management succeed, RNERU stock could offer some surprises.

Disclosure: The author held a long position in Bitcoin.

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