Shortly
- Tether Bitfinex Cantor Fitzgerald and SoftBank have joined forces to create Twenty One, a Bitcoin public company.
- Cantor Equity Partners—a blank check company associated with Cantor Fitzgerald—will help Twenty One launch via a SPAC merger.
- CEP’s shares have risen 134% in the past week, thanks to the surge that followed the announcement.
Cantor Equity Partners shares, a crypto-friendly investment company affiliated with Cantor Fitzgerald, surged by 50% after news broke that the firm plans to merge and become a Bitcoin-based business.
Nasdaq shares that were trading at $24.80 each have risen 134% in the last week. Yahoo Finance Data shows
CEP is a blank check company—an entity created to acquire or merge with others to help them go public.
The firm revealed on Wednesday that Twenty One would be launched via an SPAC merger. Twenty One will be a publicly traded, Bitcoin-centric company that plans to debut with a treasury of more than 42,000 coins—over $3.9 billion worth at today’s prices.
This company will not only offer Bitcoin financial services, and crypto related content and media but also stockpile Bitcoin to give investors access to it without holding any of the actual asset.
Twenty One is backed by a large group of investors: Bitfinex and Cantor Fitzgerald, as well as the crypto exchange Tether and Cantor and SoftBank, are helping to launch it.
Brandon Lutnick runs Cantor Equity Partners. He is the son of Howard Lutnick who was Cantor Fitzgerald’s former boss, and now U.S. commerce secretary.
Cantor-Fitzgerald is responsible for the custody of Tether’s reserve, which supports its USDT stablecoin.
USDT is a stablecoin—a digital token that trades in line with the U.S. dollar and is used by crypto traders to enter and exit transactions. The product, according to many industry watchers, is at the heart of the cryptocurrency economy.
Jack Mallers runs Bitcoin Payments Company StrikeAccording to an official announcement made on Wednesday, “will be Twenty One’s CEO.”
CEP announced that it will partner with Twenty One in order to raise 385 million dollars through convertible senior bonds and 200 million dollars through private equity investment or PIPE to buy Bitcoin to finance “general corporate uses.”
The announcement stated that investors will be able get a return on their investment by purchasing shares of the company. Twenty One shares will be traded under the ticker code XXI.
Editor by James Rubin
