Rivernorth's SPAC Strategy
Rivernorth Capital Management Expands Investments in Four SPACs Amidst Ratings Adjustments
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Key Points
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Weiss Ratings upgraded GSR IV Acquisition from a “sell (e+)” rating to a “sell (d-)” rating in a report dated July 13, signaling a marginally less negative stance on the SPAC despite an overall Sell consensus. The stock also opened at $10.18 with a 50-day moving average of $10.16 and a 52-week range of $9.96 to $10.20.
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StoneBridge Acquisition Co. (APAC) remains a meaningful holding for Rivernorth, which owned 494,517 shares (about 6.14% of the company) and contributed to institutional ownership accounting for roughly 19.18% of StonesBridge. Weiss Ratings upgraded StoneBridge from a “sell (e)” rating to a “sell (e+)” on May 1.
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Tailwind 2.0 Acquisition Corp (TDWD) added a substantial new stake of 400,000 shares valued around $3.97 million, and Weiss Ratings upgraded the stock from a “sell (e)” to a “sell (e+)” on June 1, reflecting a slightly altered risk assessment even as the stock trades near the $10 level.
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Bitcoin Infrastructure Acquisition Corp Ltd (BIXI) received Rivernorth’s purchase of 512,000 shares for about $5.08 million. Weiss Ratings reaffirmed a “sell (e)” rating on July 6, and the stock trades around the $10 mark with a 50‑day moving average near $10.00 and a 1‑year range of roughly $9.80–$10.03.
Rivernorth Capital Management LLC quietly built up a string of new SPAC positions in the first quarter of 2024, buying into four separate blank-check companies and spending roughly $18.8 million in total. The Chicago-based firm snapped up shares of GSR IV Acquisition Corp, StoneBridge Acquisition Co., Tailwind 2.0 Acquisition Corp, and Bitcoin Infrastructure Acquisition Corp Ltd — all trading near the $10 level typical of pre-deal SPACs.
The moves show Rivernorth doubling down on its SPAC arbitrage strategy, where investors buy shares close to a fund's $10 trust value and wait for a deal or redemption. At the same time, ratings agency Weiss issued updated — though still negative — grades on several of these vehicles, calling each a "sell" even after modest upgrades.
Rivernorth Spends $9.7 Million on Two Core SPAC Bets
The firm's two largest single purchases were in GSR IV Acquisition Corp and Bitcoin Infrastructure Acquisition Corp Ltd. Rivernorth bought 475,489 shares of GSR IV for about $4.77 million, according to Ticker Report. Shares of GSR IV opened at $10.18, with a 52-week range of $9.96 to $10.20 and a 50-day moving average of $10.16 — a very tight band typical of SPAC trust pricing.
For Bitcoin Infrastructure Acquisition Corp Ltd (BIXI), Rivernorth bought 512,000 shares for roughly $5.08 million. BIXI trades right around $10, with a 50-day moving average near $10.00 and a one-year range of $9.80 to $10.03, according to Ticker Report. Weiss Ratings reaffirmed a "sell (e)" rating on BIXI as recently as July 6 — its lowest-tier grade.
StoneBridge and Tailwind Round Out the SPAC Shopping Spree
Rivernorth also added 494,517 shares of StoneBridge Acquisition Co. (APAC) for about $4.97 million. That stake equals roughly 6.14% of the company, and institutional investors as a group now own about 19.18% of StoneBridge. Weiss Ratings bumped StoneBridge up from a "sell (e)" to a "sell (e+)" on May 1 — a small step up, but still firmly in sell territory.
Tailwind 2.0 Acquisition Corp (TDWD) was the fourth SPAC in the haul. Rivernorth bought 400,000 shares for around $3.97 million. Weiss upgraded Tailwind from "sell (e)" to "sell (e+)" on June 1. Like the others, the stock trades near $10, showing little price movement while investors wait for a merger announcement or trust redemption.
Weiss Upgrades Signal Slightly Less Risk, Not Optimism
Three of the four SPACs got small rating upgrades from Weiss during the spring and summer. GSR IV moved from "sell (e+)" to "sell (d-)" on July 13 — the highest grade of the group, but still a sell. StoneBridge and Tailwind each moved one notch up within the "e" tier. Only BIXI stayed flat, holding a "sell (e)" with no upgrade as of early July.
In Weiss's system, the "e" tier is the weakest, while "d-" sits just above it. None of these upgrades signal a buy case. They suggest Weiss sees slightly less downside risk — not a reason to get excited. For Rivernorth, that distinction likely matters less than the floor created by the $10 trust value backing each SPAC share.
Rivernorth Also Boosted Saba Fund and Municipal Bond Stakes
SPAC plays were not the only moves Rivernorth made in Q1. The firm increased its stake in Saba Capital Income & Opportunities Fund II (SABA) by 2.4%, bringing its total to 2,857,603 shares, according to Watchlist News. Saba Capital is a closed-end fund that itself invests in SPACs and distressed credit — giving Rivernorth layered SPAC exposure.
Rivernorth also nearly doubled its position in BNY Mellon Strategic Municipal Bond Fund (DSM), adding 824,765 shares and growing its stake by 98.7% to a total of 1,660,357 shares, according to Ticker Report. That move shows the firm diversifying beyond SPACs into fixed-income vehicles alongside its blank-check company bets.
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