Kernel Group Holdings Inc. (NASDAQ: KRNL) is, in many ways, a typical SPAC with insignificant operations. Despite this, the market does see value in holding it for a number of reasons. For this reason, this relatively unknown player even outperformed the S&P 500, by climbing 2.5% in the last year, whereas the index fell by 16%.
Kernel’s Rise to Fame
Kernel Group Holdings Inc. (KRNL) first came to public attention last year, when reports emerged of a deal to take to the public, the startup, Infarm. Infarm is a German vertical farming business that claims to grow to produce by saving up to 95% water in comparison to traditional means. KRNL surged after these reports, given the vital role it played in ensuring the smooth completion of this deal. The deal was further bolstered by the fact that Infarm had raised a total of $400 million, and that the combined business valuation stood at over $1 billion.
The KRNL Approach
Despite its limited business operations, and narrow range of functions, Kernel Holdings, under its skillful management has developed a rigorous model to follow. Through this, it focuses on specific areas of acquisition in which it holds expertise. These are marketplaces, both B2B and B2C, as well as Tech Infrastructure, and supply-chain logistics. Through its wide breadth of expertise, the management of Kernel has developed lucrative and highly valuable relationships in each of these domains, which allow for the smooth execution of merger deals. Each of the areas of its focus is some of the most high-value in the global economy, as well as some of the most sustainable, in terms of its forward-looking prospects.
KRNL stock, despite its narrow scope and insignificant operations, offers value to all those that have included it in their portfolios. Considering it rose by 2.6% in price, it has acted as a sound store of value in a high-inflation climate that has seen considerable dollar devaluation.