Move over Strategy. There’s a new bitcoin investment vehicle on Wall Street that is luring investors.
Cantor Equity Partners, a SPAC that recently struck a deal to merge with crypto firm Twenty One Capital, has seen its stock price soar as much as 462% since it announced the merger on April 22.
The rally continued on Thursday, with shares soaring as much as 42% as bitcoin edged up toward the $100,000 level.
Twenty One Capital is backed by stablecoin issuer Tether, as well as Bitfinex and SoftBank Group.
The company strives to become a pure-play bitcoin holding company that increases its exposure to the cryptocurrency over time, similar to Michael Saylor’s Strategy.
In a recent investor presentation filed with the SEC, Twenty One Capital said it would hold about 42,000 bitcoin and use shareholder-friendly methods to purchase more of the crypto over time, including selling stock and debt to fund future purchases.
The holding of 42,000 bitcoins would make Twenty One Capital the third-largest bitcoin treasury in the world.
Sky-high valuation
The combined company is set to have about 371 million shares outstanding, lending Twenty One Capital a market valuation of $18 billion at current prices.
That’s more than quadruple the value of the bitcoin it is expected to hold.
For context, Strategy’s valuation of $105 billion is about double the total value of the bitcoin it holds.
The massive valuation speaks to traders’ appetite for bitcoin-related trading vehicles, especially as the cryptocurrency rebounds 30% from its mid-April lows.
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A connection to Trump
The CEO of Cantor Equity Partners is Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick.
President Donald Trump was mentioned in Twenty One Capital’s investment presentation as being more crypto-friendly than previous administrations.
Jack Mallers, the co-founder and CEO of Twenty One, will lead the combined company.
“Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time,” Mallers said in the press release announcing the merger.
