Steel Partners quietly Builds 10% Stake in Spruce Power, Signaling Bullish Outlook Amid Volatile Solar Market

Steady Buying Amid a Volatile Market

Steel Partners Holdings L.P. (Steel Holdings) has quietly increased its stake in Spruce Power Holding Corp. over the past two months, adding roughly 3.3 million shares in early‑January 2026 at $5.03–$5.10 each. The cumulative purchase brings the group’s ownership to just over 10 % of the outstanding common stock, a threshold that triggers the “Section 13(d)” reporting obligations. While the individual trade sizes are modest compared to the company’s total float (≈33 million shares), the consistent buying trend suggests a long‑term conviction in Spruce’s distributed‑solar platform.

What This Means for Investors

The timing of the purchases is noteworthy. Spruce’s stock has bounced back from an 8‑month low of $1.13 to a year‑high of $6.11, yet the current price of $5.10 remains below the 52‑week low of 2018, and the firm is still trading at a negative price‑to‑earnings ratio of –3.74. The influx of capital from a seasoned private‑equity player may be interpreted by market participants as a vote of confidence in the company’s growth trajectory, particularly its subscription‑based rooftop solar model. However, the negative sentiment score of –10 and a buzz level of 11.16 % indicate that social‑media chatter remains muted and somewhat bearish. For risk‑averse investors, the Steel Holdings buys could be a signal to reassess the valuation of a company still operating at a loss, while growth‑oriented investors may view the purchase as a green light to stay the course.

Steel Partners’ Historical Buying Pattern

Steel Partners’ insider activity at Spruce has been consistently bullish over the last two quarters. Beginning in late‑November 2025, the group bought shares in increments ranging from a few thousand to over 60 000 shares per filing, averaging about $5.05 per share. The most sizable single purchase was 57 775 shares on December 17, 2025, at $4.99, followed by a 28 127‑share purchase on December 9 at $5.09. The pattern shows no evidence of large sell‑offs or holdings that could suggest a forthcoming divestiture. Instead, the group’s cumulative holdings grew from roughly 2.97 million shares at the start of December to 3.21 million by mid‑January, reinforcing a steady, long‑term commitment.

Strategic Implications for Spruce Power

Spruce Power’s core business—providing subscription‑based rooftop solar and battery services—positions it well to tap the growing demand for decentralized energy solutions. The company’s recent management change (appointment of a new CFO) and its focus on low‑up‑front-cost models align with the preferences of homeowners and small businesses. The Steel Holdings buys may accelerate capital availability for further expansion, such as new project acquisitions or technology upgrades. Yet, the firm’s negative earnings and relatively low market cap ($91.8 million) underscore the need for disciplined cost control and revenue acceleration to justify future valuation increases.

Bottom Line

For investors watching Spruce Power, the latest insider buys by Steel Partners Holdings L.P. signal a cautious optimism about the company’s long‑term prospects. While the stock remains in a valuation trough and subject to market volatility, the steady accumulation by a seasoned investment group offers a potential catalyst for confidence. As Spruce continues to navigate a challenging earnings environment, the support from Steel Partners could play a key role in sustaining the company’s growth momentum and delivering shareholder value over the medium term.