“There is no major negative fundamental catalyst that we can see,” Dorman said. “These kinds of big moves are common after SPACs because the entire investor base shifts from interest-oriented SPAC buyers to new, fundamentally-driven, long-term equity owners.”
SPAC merger tickers are often volatile in their early days of trading. These vehicles raise money first and seek an acquisition later, allowing a private company to reach the public market by merging with the shell. But once the deal closes, the investor base often reverses, with SPAC arbitrage investors and redemption-focused holders giving way to public equity investors weighing the company’s fundamentals. This transition can create sharp price fluctuations, especially when the float is limited or the stock had traded up before the merger.
Crypto IPO hangover
Dorman added that the poor performance of recent crypto-related stock listings has conditioned investors to be cautious.
“Given how terrible recent crypto IPOs have been — Coinbase (COIN), Bullish (BLSH), Gemini (GEMI), BitGo (BTGO) and Circle (CRCL) — it’s not that surprising,” Dorman said.
Since its February IPO, digital asset provider and custodian BitGo has fallen 70%. Gemini, the crypto exchange founded by the Winklevoss brothers, has fallen 85% since its debut in September. Bullish, CoinDesk’s owner, has fallen over 70% from its debut price of $90 in August 2025 and is below its $37 IPO price.
