SPAC King Palihapitiya Makes Bold Comeback - New Blank-Check Firm Targets Next Wave of Market Disruption

Wall Street's most controversial capital raiser is back in the game.

Chamath Palihapitiya, the investor who revolutionized SPAC mania during the pandemic boom, just filed paperwork for a new blank-check company—his first public market move since the SPAC bubble burst spectacularly.

The Comeback Play

Palihapitiya's returning with the same playbook that made him billions: identify disruptive private companies, take them public through his acquisition vehicle, and let retail investors chase the narrative. This time, he's betting markets have forgotten how 80% of his previous SPACs traded below offering price within two years.

Timing the Market Bottom

He's launching precisely when traditional IPOs remain frozen and crypto-native companies struggle with regulatory uncertainty. The move screams opportunity—or desperation, depending on which side of his trade you're on.

Because nothing says 'innovation' like recycling the same leveraged structure that wiped out $100B in market cap last cycle—but with extra Bloomberg terminal buzzwords this time.

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For context, SPACs are shell companies that raise capital through an initial public offering (IPO) with the intent to merge with a private business, effectively taking that company public without going through the traditional IPO process. These deals surged in popularity during 2020 and 2021 after attracting big names like Bill Ackman and Palihapitiya. However, investor enthusiasm faded in the years that followed due to increased regulatory scrutiny and a wave of underwhelming or failed mergers. In fact, many SPACs either couldn’t find merger targets or saw their stock values drop after going public.

Despite this cooling-off period, Palihapitiya remains confident in the SPAC model. Indeed, in a letter to investors, he explained that his original intent back in 2017 was to help rebalance the dynamics between public and private markets. While he admits that SPACs aren’t a cure-all for the flaws in the IPO system, he believes that they still serve a vital role in funding innovation. Interestingly, one of his biggest success stories is SoFi Technologies (SOFI), which went public via a SPAC deal in early 2021 and has since grown into a company worth nearly $29 billion.

Is SOFI Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on SOFI stock based on five Buys, 11 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SOFI price target of $20.06 per share implies 14.1% downside risk.