Archive · 15 Sep 2025
SPACs Make a Comeback: Will History Repeat Itself?
Imagine a special kind of company called a SPAC that is created to buy other companies.
During the pandemic, these were really popular.
A company would be created and sell shares, and then it would look for another company to buy and take public.
Many investors lost money, and some of the SPACs even went bankrupt.
Despite this, they're making a comeback, especially those tied to hot industries such as cryptocurrency and AI, and people in Trump's orbit are getting involved.
SPACs were a popular get-rich-quick scheme during the pandemic.
Central banks raised interest rates in 2022, leading to a decline in SPACs.
More new SPACs will be listed this year than in 2023 and 2024 combined.
The new wave of SPACs will focus on cryptocurrency and AI.
Individuals connected to Donald Trump are involved in recent SPAC deals.
- Who
- SPACs (Special Purpose Acquisition Companies), investors, and companies.
- What
- SPACs are making a comeback after a period of decline.
- When
- The revival is happening now after a downturn in 2022.
- Where
- Wall Street
- Why
- Pressure to push startups onto public markets and interest in new industries such as cryptocurrency and AI.
- SPAC Definition
- A shell company listed on the stock market used to take private companies public.
- Popularity
- SPACs were popular during the pandemic.
- Recent Trend
- More SPACs will be listed this year than in 2023 and 2024 combined.
- New Focus
- Cryptocurrency and AI are becoming the focus of SPACs.
- Trump Connection
- Truth Social went public via a SPAC, and others in Trump's orbit are cashing in.