“There is no major negative fundamental catalyst that we can see,” Dorman stated. “These kinds of big movements are common after SPACs because the entire investor base turns over from fixed-income-oriented SPAC buyers to new, fundamentally driven long-term equity owners.”
SPAC merger tickers are sometimes unstable of their early days of buying and selling. These automobiles elevate cash first and search an acquisition later, permitting a personal firm to succeed in the general public market by merging with the shell. However as soon as the deal closes, the investor base usually turns over, with SPAC arbitrage buyers and redemption-focused holders giving technique to public-equity buyers weighing the corporate’s fundamentals. That transition can create sharp value swings, notably when the float is restricted or the inventory had traded up earlier than the merger.
Crypto IPO hangover
Dorman added that poor efficiency of latest crypto-related inventory listings have conditioned buyers to be cautious.
“Given how horrible recent crypto IPOs have been — Coinbase (COIN), Bullish (BLSH), Gemini (GEMI), BitGo (BTGO) and Circle (CRCL) — it’s not that surprising,” Dorman stated.
Since its February IPO, digital asset service supplier and custodian BitGo tumbled 70%. Gemini, the crypto change based by the Winklevoss brothers, is down 85% from its September debut. Bullish, CoinDesk’s proprietor, has fallen over 70% from its $90 debut value in August 2025, and sits beneath its $37 IPO value.
