Cantor Equity Partners’ shares jumped nearly 500% after announcing a merger with Twenty One Capital, which plans to be a major bitcoin holding firm. Backed by Tether and SoftBank, Twenty One is set to hold about 42,000 bitcoin, potentially becoming the third-largest holder globally. The merger suggests a firm investor appetite for bitcoin as the cryptocurrency rebounds.
In a striking turn of events in the cryptocurrency market, Cantor Equity Partners has seen its SPAC stock surge an impressive 462% following the announcement of its merger with Twenty One Capital on April 22. This spike attracted traders keen on investing in the latest bitcoin-focused venture, which has quickly gained traction among Wall Street investors.
The rally continued through to Thursday, bolstered by bitcoin nearing the significant $100,000 mark. The stock’s robust performance is closely associated with the backing of high-profile firms, with Twenty One Capital being supported by Tether, Bitfinex, and the SoftBank Group. The ambitious goal of this merger is to establish a company solely focused on acquiring and holding bitcoin, similar to strategies employed by notable figures like Michael Saylor.
Twenty One Capital recently presented to investors, revealing plans to hold roughly 42,000 bitcoin while emphasising its commitment to expanding its holdings. The company aims to implement shareholder-friendly strategies which include raising funds through stock and debt offerings intended for future bitcoin acquisitions. Should it reach its bitcoin target, Twenty One Capital would emerge as the third-largest holder of bitcoin globally.
In terms of financials, the merged entity is projected to have approximately 371 million shares outstanding, yielding a market valuation that could soar to around $18 billion at current trading levels. This valuation starkly contrasts with the anticipated value of its bitcoin holdings, which would suggest market participants are heavily betting on the company’s growth in the crypto sector.
For comparison, Strategy, which boasts a valuation of $105 billion, holds bitcoin worth nearly half that amount. The striking disparity illustrates investors’ fervor for bitcoin-related investments, particularly as the cryptocurrency has rebounded nearly 30% from its depressed state mid-April.
Woven into the company’s narrative is a connection to politics. Cantor Equity Partners is led by Brandon Lutnick, who happens to be the son of US Commerce Secretary Howard Lutnick. During a recent investor pitch, President Trump was noted for being more open to cryptocurrency initiatives compared to his predecessors, which could bode well for Twenty One Capital.
Jack Mallers, one of the co-founders and the current CEO of Twenty One, expressed an ambitious vision. “Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time,” Mallers asserted in the press release that coincided with the merger announcement.
As the landscape for cryptocurrency investments continues to evolve, it’s worth keeping an eye on these developments and how they might reshape traditional investment strategies in the near future.
