Since the beginning of December, around 70 special-purpose acquisition companies (SPACs), have liquidated and returned the money to the investors.

A SPAC firm, a.k.a blank-check company, raises money to merge with a private company to take it public. After regulatory scrutiny, the company going public replaces the SPAC in the stock market. 

According to data from SPAC Research, SPAC creators have lost more than $600 million on liquidations this month and more than $1.1 billion this year.

SPAC frenzy approached its end amid fewer deal prospects and looming tax bills. Around four SPACs pulled their shutters down daily, nearly at the same rate they were being launched when the sector peaked in early 2021.

Another roughly 150 SPACs holding about $25 billion have reached merger agreements but haven't closed, including Digital World Acquisition Corp (NASDAQ:DWAC), the SPAC that was hoping to merge with former President Donald Trump's social-media company, wrote the Wall Street Journal, citing SPAC Research.

Also Read: Here's How Much Marjorie Taylor Greene Has Lost On Her Trump SPAC Investment

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