New Bitcoin Company Set to Launch on NASDAQ
Twenty One, a new Bitcoin venture, is gearing up for its NASDAQ debut through a merger with Cantor Equity Partners. This company has already secured $459 million in Bitcoin due to a deal involving the stablecoin giant Tether.
According to a recent SEC filing, Cantor Equity Partners disclosed that Tether’s collaboration resulted in the acquisition of 4,812.22 BTC at an average price of approximately $95,319.83 each, totaling around $458.7 million. Following the merger, Twenty One will purchase the cryptocurrency at this same rate.
Formed through a partnership among Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group, Twenty One aims to hold more than 42,000 Bitcoin, valued nearly at $4.4 billion given current market prices. The merger plan was put forward in April.
Interestingly, the acquisition coincides with Bitcoin prices projected to rise above $104,000 soon, which is just a short distance from its all-time high of $108,786. This slight drop may reflect the recent tariffs exerted by the U.S. and China, which unsettled the market a few weeks back.
Moreover, this movement in the Bitcoin market showcases its resilience, prompting some companies to retain significant reserves. For instance, Michael Saylor’s firm has amassed about $60 billion in Bitcoin over recent years. Other companies, like Semler Scientific and Marathon Digital, have also embraced similar strategies.
Tether recently reported earnings exceeding $1 billion in the first quarter, providing ample funds to explore further business opportunities, including this Bitcoin purchase.
Besides holding Bitcoin, Twenty One is planning to introduce lending services and additional financial products. Tether and Bitfinex will hold a majority stake in the new company, while SoftBank will be a minority shareholder.
Under the leadership of Jack Mullers, the new CEO who also heads the Bitcoin payment platform Strike, Twenty One hopes to raise approximately $600 million, with $385 million expected from convertible senior notes and $200 million through private equity investments.
The raised funds will support more Bitcoin acquisitions and “general corporate purposes.” If successful, the company will trade under the ticker symbol XXI once the merger is finalized.
