Investors Lose Interest as Crypto SPACs Compete for Attention: M-3 Brigade Acquisition V Corp. (MBAV) and Columbus Circle Capital I Corp. (CCCM) Experience Decline

The information provided does not constitute investment advice, and the author holds no shares in any of the mentioned stocks.

The Resurgence of SPACs: A Crypto Twist

Special Purpose Acquisition Companies (SPACs), which gained heightened popularity during the bull market ignited by COVID-19-related stimulus and surplus savings, are attempting to re-enter the spotlight. However, recent trends suggest that investor enthusiasm may be waning with their new foray into the cryptocurrency space. Notable examples include M-3 Brigade Acquisition V Corp.(NASDAQ: MBAV) and Columbus Circle Capital I Corp.(NASDAQ: CCCM).

ProCap BTC’s Strategic Move

On June 23, ProCap BTC, a company specializing in Bitcoin financial services, announced its intent to go public by merging with Columbus Circle Capital I Corp. This reverse merger strategy allows ProCap BTC to leverage the funds raised in CCCM’s Initial Public Offering (IPO) to secure approximately $1 billion in Bitcoin assets.

In preparation for the merger, ProCap BTC has already acquired 3, 724 Bitcoin at an average time-weighted price (TWAP) of $103, 785, amounting to a total expenditure of approximately $386.5 million.

$CCCM after a full day of thinking about the big move down today, here are my thoughts…

it’s was very fucked how 1) liquidity was created through leaking a rumor to FT to encourage PIPE participation & reduce risk for it, 2) SPAC arbs participating in PIPE was 1000000000000%…

— Odd Diligence (@OddDiligence) June 24, 2025

Investor Sentiment and Market Reaction

Unfortunately for investors, the reception surrounding the acquisition target of Columbus Circle Capital I Corp.has been lukewarm at best, with shares plummeting by approximately 22% in just five trading days. Speculations of dubious activities related to the associated PIPE financing have further dampened investor confidence.

In a similar vein, Bloomberg reported that M-3 Brigade Acquisition V Corporation—backed by a former Blackstone dealmaker and a co-founder of Tether—intends to raise $1 billion to create a crypto treasury encompassing a diversified portfolio of digital currencies, including Bitcoin, Ether, and Solana. Unfortunately, this announcement led to an immediate sell-off, with the stock price dropping by over 12% shortly after.

Have exited most of my crypto SPACs that were getting overheated. Think this specific cycle is getting toppy. Repositioning in new ideas with no downside risk. Will share soon.

— Capital Valor (@CapitalValor) June 23, 2025

Challenges for SPACs: Regulatory Scrutiny and Investor Trust

The majority of SPACs that emerged during the 2020-2022 period have exhibited disappointing performance. Key factors include misaligned incentives for deal sponsors and insufficient disclosure requirements that permitted exaggerated claims to entice investors. Although the Biden administration took steps to tighten disclosure regulations, potential changes under the Trump administration could relax these restrictions once again.

As the landscape of SPACs and cryptocurrency continues to evolve, investors must remain vigilant and informed about the risks and rewards these financial instruments present.

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