Twenty One Capital, a Bitcoin-focused monetary firm led by Jack Mallers, expects its shares to start buying and selling on the New York Inventory Trade subsequent week following the completion of its merger with Cantor Fairness Companions, a particular objective acquisition firm.
The announcement on Thursday adopted shareholder approval of the deal at Cantor Fairness Companions’ assembly, clearing the best way for Twenty One Capital to checklist subsequent Tuesday beneath the ticker image “XXI.”
Closing voting outcomes from the assembly are anticipated to be disclosed in a forthcoming Type 8-Ok submitting with the US Securities and Trade Fee.
Twenty One Capital launched in April with the objective of constructing one of many largest company Bitcoin (BTC) treasuries. Early backers embody Cantor Fitzgerald, Tether, Bitfinex and enterprise capital agency SoftBank.
Upon itemizing, the corporate is predicted to develop into the third-largest company holder of Bitcoin, trailing solely Michael Saylor’s firm, Technique, and MARA Holdings, a significant cryptocurrency miner.
With 43,514 BTC on its books, Twenty One Capital’s Bitcoin stash is presently price about $4 billion, in accordance with industry data.
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Bitcoin treasury companies beneath stress after unstable crypto crash
Corporations holding massive Bitcoin reserves are feeling the pressure after a large liquidation wave on Oct. 10 triggered the most important single-day wipeout in crypto historical past, with over $19 billion in leveraged positions liquidated.
The ripple results have dragged down the worth of Bitcoin. After reaching a peak above $126,000 in early October, Bitcoin dropped sharply in November, bottoming out under $80,000 as sell-offs intensified.
The slump has hit companies with large Bitcoin holdings significantly arduous. Technique noticed its inventory plunge, eroding a lot of the premium it as soon as loved over the worth of its Bitcoin stash.
On this atmosphere, the viability of corporate Bitcoin treasury strategies is being questioned, significantly in a market the place continued volatility and skinny liquidity improve the chance that additional downturns might wipe out unrealized beneficial properties.
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