The U.S. Bitcoin enterprise Twenty One, directly invested in by the world's largest stablecoin issuer Tether, initially holds over 42,000 BTC. The blank check company Cantor Equity Partners Inc. (stock code CEP) has seen its stock price rise 197% since closing on April 22. Investors are enthusiastic about this latest publicly traded Bitcoin investment tool, with its expected market value approximately three times the valuation of its held cryptocurrencies.
(Tether's Ambition and Blueprint in Directly Investing BTC in Twenty One)
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ToggleWho are CEP's Initial Investors?
The U.S. Bitcoin enterprise Twenty One will go public through a merger with Cantor Fitzgerald's special purpose acquisition company (SPAC) Cantor Equity Partners, with Jack Mallers, founder of Strike, serving as CEO. The shareholder lineup includes Tether, Japanese SoftBank Group, Bitfinex exchange, and Cantor Fitzgerald.
Tether and Bitfinex will directly transfer 31,500 BTC in exchange for equity in the new company. SoftBank Group will buy BTC through Tether with cash, becoming the second-largest shareholder.
After the transaction, Tether will have voting rights of 51.7%, holding absolute say.
It will also raise $585 million through private investment (PIPE) and convertible debt.
- Convertible debt with a conversion price of $13 per share, raising $385 million
- Common stock PIPE at $10 per share, raising $200 million
CEP Will Become a Full-Spectrum Bitcoin Company
Twenty One emphasizes that it is not just a Bitcoin reserve strategy company, but also plans to promote Bitcoin adoption and Bitcoin culture, such as producing Bitcoin-exclusive content and media, becoming a cultural driver in the Bitcoin community.
Additionally, Twenty One plans to launch various "Bitcoin-native financial products", such as Bitcoin lending and Bitcoin capital market products.
CEP Surges 197% in 3 Days
Twenty One was listed on the Nasdaq exchange under the code "CEP" before the transaction completion. After the merger, it will be listed with the trading code "XXI".
The proposed transaction includes issuing convertible bonds after the transaction closes, which will result in 370.7 million circulating shares for the merged company, including potential dilution from debt-to-equity conversion.
CEP's stock price has surged 197% in the past 3 days. At the current stock price, Twenty One's fully diluted market value is approximately $12 billion—far exceeding the expected value of 42,000 BTC at around $4 billion, demonstrating investors' enthusiasm.
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
