Is the SPAC craze cooling down after the big dump of Bitcoin? Tether and SoftBank's bet on Twenty One becomes the focus.

As Bitcoin has fallen by 30% from its peak in October, the special purpose acquisition company (SPAC), which hopes to replicate the success of MicroStrategy's digital asset finance company (DAT), is facing a test. The performance of Bitcoin company Twenty One Capital Inc., supported by SoftBank Group and the largest stablecoin issuer Tether, will be closely watched after its merger with Cantor Equity Partners Inc., a special purpose acquisition company ( led by Cantor Fitzgerald Chairman Brandon Lutnick, following the investor vote on December 3.

Multiple SPACs are waiting to merge with digital asset management companies.

According to a report by Bloomberg, there are currently nine SPAC companies waiting to merge with digital asset management companies. The stock prices of each company have fallen from the initial frenzy, which has led Wall Street observers to question whether investors will continue to hold and pay the premiums that were popular in a vastly different market environment.

The performance of Bitcoin company Twenty One Capital Inc., supported by SoftBank Group and the largest stablecoin issuer Tether, after merging with Cantor Equity Partners Inc., a special purpose acquisition company led by Cantor Fitzgerald chairman Brandon Lutnick, will be closely followed after the investor vote on December 3.

The merger transaction between Anthony Pompliano's Bitcoin fund management company ProCap BTC, a well-known figure active in the cryptocurrency space for a long time, and Columbus Circle Capital Corp. I, with a redemption rate of ), where the stock ratio exchanged for cash is also (, will also be followed.

Early investors are arbitraging, with most selling stocks to exit.

Julian Klymochko, CEO of Accelerate Financial Technologies, stated that the business models of these companies are based on marketing to retail investors. Only if retail investors are willing to pay a price for the company's stock that is higher than the amount of cryptocurrency they hold can the company sell shares ) to issue new shares and buy coins (.

Klymochko stated that he sold shares of the Lutnick SPAC, gaining a substantial windfall, and has been buying shares of Columbus Circle to quickly cash in on profits.

The structure of a SPAC includes a redemption clause that allows investors to redeem their shares at a price of $10 per share plus any accrued interest. Data from SPAC Research analyzed by Bloomberg shows that over the past two years, an average of about 93% of shares have been redeemed after SPAC transactions are completed.

However, given that the sponsors' shares and PIPE investors need time to register their shares with U.S. regulatory agencies, early investors need to wait for the current cryptocurrency downturn to pass in order to maximize their returns.

The investor meeting on December 3rd is receiving a lot of attention.

The acquisition of Cantor and Twenty One will make Tether and SoftBank the largest shareholders, as the deal raised $165 million through a private equity investment (PIPE). The acquisition price of the PIPE was $21 per share, completed in June, representing a premium of nearly 50% over Tuesday's closing price.

) directly invested in Twenty One with Bitcoin, the ambitions and blueprint behind Tether (

In the ProCap transaction, the SPAC sponsors will receive 9 million shares due to their role in the transaction, which is a common practice for SPACs known as sponsor shares or founder shares, allowing supporters to acquire shares at a very low price. In recent years, during the collapse of the SPAC industry, sponsor shares have become an important point of focus.

An entity controlled by Pompliano has invested $8.5 million and will hold over 10 million shares after the transaction is completed. Based on Tuesday's closing price, these shares are worth over $100 million. The entity controlled by Pompliano will continue to provide certain consulting, marketing, and advertising services for the combined company.

Both companies will hold investor voting on December 3rd to determine the future direction.

Is the SPAC craze cooling down after the big dump of Bitcoin? Tether and SoftBank's bet on Twenty One become the focus. First appeared in Chain News ABMedia.