Bitcoin Treasury SPAC Market Declared Inoperative by Institutional Investors
February 24, 2026
The surge in Bitcoin prices last year sparked a frenzy in the special purpose acquisition company (SPAC) market, particularly the Bitcoin treasury deals. However, as Bitcoin prices plummeted by 50 percent since its peak in October, the appeal of these deals has waned. With only 11 percent of the 144 SPACs that went public in 2025 being Bitcoin treasury deals, it is evident that the once-hot market has fizzled out.
Kristi Marvin, the founder and CEO of SPACInsider, expressed her skepticism about Bitcoin treasury companies’ viability in the current market scenario. She noted that the popularity of these companies has diminished due to the availability of similar offerings through ETFs, making SPACs less appealing to investors seeking exposure to cryptocurrencies indirectly.
Two of the most prominent Bitcoin treasury deals, Cantor Equity Partners and ProCapital Financial, have seen their values plummet following their mergers and subsequent DeSPACs. Cantor Equity Partners, which previously traded at multiples of its IPO price, sealed a merger with Twenty One Capital, backed by Tether and SoftBank, resulting in a sharp decline in its stock price.
Anthony Pompliano’s ProCap Financial, another Bitcoin treasury SPAC, experienced a similar fate, with its stock trading significantly below its IPO price following a merger with Columbus Circle Capital. The post-merger slump in SPAC prices is a common phenomenon as IPO investors redeem their shares at the offering price, often leading to a decline in stock value.
According to SPACInsider data, the median stock price of crypto DeSPACs has fallen to $1.73, signaling a lack of investor confidence in these deals. Despite the initial enthusiasm surrounding crypto SPACs in mid-2025, the trend has not sustained itself, with many deals failing to deliver the expected returns.
The Bitcoin treasury model, popularized by MicroStrategy’s Michael Saylor, faced a similar fate as the company’s stock tumbled alongside Bitcoin prices. Saylor’s strategy of holding Bitcoin on the company’s balance sheet no longer holds the same allure it did during the peak of the cryptocurrency boom.
Investors are now cautious about entering into such deals, wary of the volatility and uncertainty surrounding cryptocurrencies. The decline of Cantor Equity Partners and ProCapital Financial serves as a cautionary tale for companies looking to capitalize on the crypto craze through SPACs. As the dust settles on the Bitcoin treasury SPAC market, it is evident that the once-promising sector is now grappling with challenges and skepticism from investors.
