“We cannot observe any major negative fundamental catalyst,” Dorman said. “These types of large moves are common after SPACs, as the entire investor base shifts from fixed-income-focused SPAC buyers to new, fundamentally motivated long-term stock owners.”
SPAC merger tickers are often volatile early in their trading. These vehicles raise money first and seek acquisition later, allowing a private company to enter the public market by merging with the shell. But once the deal closes, the investor base often shifts, with SPAC arbitrage investors and buyout-focused holders giving way to public stock investors weighing in on company fundamentals. This transition can create large price swings, especially when the float is limited or the shares were trading higher before the merger.
The Cryptocurrency IPO Hangover
Dorman added that the poor performance of recent crypto-related stock listings has conditioned investors to be cautious.
“Given the recent horror of cryptocurrency IPOs – Coinbase (COIN), Bullish (BLSH), Gemini (GEMI), BitGo (BTGO) and Circle (CRCL) – this is not that surprising,” Dorman said.
Since its IPO in February, digital asset service provider and custodian BitGo has fallen 70%. Gemini, the crypto exchange founded by the Winklevoss brothers, is down 85% from its September debut. CoinDesk owner Bullish has fallen more than 70% from its initial price of $90 in August 2025 and is below its IPO price of $37.
