Twenty One Capital, a financial entity centered on Bitcoin and headed by Jack Mallers, anticipates that its shares will commence trading on the New York Stock Exchange next week following the successful merger with Cantor Equity Partners, a special purpose acquisition firm.
The announcement made on Thursday came after shareholders approved the merger during Cantor Equity Partners’ meeting, paving the way for Twenty One Capital to list next Tuesday under the ticker “XXI.”
Details regarding the final voting outcomes from the meeting will be released in an upcoming Form 8-K filing with the US Securities and Exchange Commission.
Founded in April, Twenty One Capital aims to create one of the largest corporate Bitcoin (BTC) treasuries. Initial supporters include Cantor Fitzgerald, Tether, Bitfinex, and the venture capital firm SoftBank.
Upon its listing, the company is set to become the third-largest corporate holder of Bitcoin, only surpassed by Michael Saylor’s Strategy and MARA Holdings, a leading cryptocurrency miner.
With 43,514 BTC in its reserves, the value of Twenty One Capital’s Bitcoin holdings is approximately $4 billion, based on industry data.
Related: Bitcoin miners face ‘harshest margin environment of all time’
Bitcoin treasury companies under pressure amid crypto volatility
Firms with substantial Bitcoin reserves are experiencing challenges following a significant liquidation wave on October 10, which resulted in the largest single-day wipeout in crypto history, with over $19 billion in leveraged positions being liquidated.
The ensuing ripple effects have decreased Bitcoin’s value. After peaking above $126,000 in early October, Bitcoin sharply declined in November, falling below $80,000 as sell-offs escalated.
The decline has particularly affected companies with large Bitcoin holdings. Strategy experienced a significant drop in its stock, diminishing much of the premium it previously held over the value of its Bitcoin reserves.
In this context, the sustainability of corporate Bitcoin treasury strategies is being scrutinized, especially in a market where ongoing volatility and limited liquidity amplify the risk of further decreases potentially wiping out unrealized gains.
Magazine: Crypto carnage — Is Bitcoin’s 4-year cycle over? Trade Secrets
