Twenty One Capital, a financial firm centered on Bitcoin and headed by Jack Mallers, anticipates that its shares will commence trading on the New York Stock Exchange next week after finalizing its merger with Cantor Equity Partners, a special purpose acquisition company.
The announcement made on Thursday followed the endorsement of the deal by shareholders during a meeting at Cantor Equity Partners, paving the way for Twenty One Capital to list next Tuesday under the ticker symbol “XXI.”
Official voting results from the meeting are expected to be revealed in an upcoming Form 8-K submission to the US Securities and Exchange Commission.
Founded in April, Twenty One Capital aims to create one of the largest corporate Bitcoin (BTC) treasuries. Initial investors include Cantor Fitzgerald, Tether, Bitfinex, and the venture capital firm SoftBank.
Once listed, the company is projected to rank as the third-largest corporate holder of Bitcoin, following Michael Saylor’s firm, Strategy, and MARA Holdings, a prominent cryptocurrency mining entity.
With 43,514 BTC in its portfolio, Twenty One Capital’s Bitcoin reserves are currently valued at around $4 billion, based on industry data.
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Bitcoin treasury firms facing pressure after crypto volatility
Firms with substantial Bitcoin reserves are experiencing challenges following a significant liquidation event on Oct. 10, which resulted in the largest single-day loss in crypto history, with over $19 billion in leveraged positions being liquidated.
This has led to a decline in Bitcoin’s value. After achieving a peak above $126,000 in early October, Bitcoin saw a steep fall in November, dropping below $80,000 as selling intensified.
The downturn has particularly impacted companies with large Bitcoin holdings. Strategy’s stock suffered a steep decline, diminishing much of the premium it previously held over the value of its Bitcoin reserves.
This situation raises concerns about the sustainability of corporate Bitcoin treasury strategies, especially in a market where ongoing volatility and poor liquidity heighten the risk of further downturns erasing unrealized gains.
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