American Bitcoin Company Twenty One Officially Established on April 24
American Bitcoin company Twenty One was officially established on April 24 and announced its plan to go public through a merger with Cantor Fitzgerald’s special purpose acquisition company (SPAC) Cantor Equity Partners. The initial assets will include over 42,000 Bitcoins (BTC).
Twenty One is led by Strike founder Jack Mallers, with shareholders including Tether and SoftBank from Japan. The goal is to create a company centered around Bitcoin, with the potential to become a formidable competitor to MicroStrategy.
Jack Mallers Appointed CEO, Advocating for a “Bitcoin-First” Vision
Jack Mallers, the founder of Strike, has long been dedicated to promoting Bitcoin payments and government adoption. He stated:
“We are building a brand new market.”
Merger and Fundraising Amounting to $585 Million, Tether Guarantees Bitcoin Buyback
After the merger agreement between Twenty One and Cantor Equity Partners is completed, a private investment in public equity (PIPE) and convertible bonds will be conducted, totaling $585 million.
Of this amount, $385 million will be in convertible preferred debt, with a conversion price of $13 per share.
Additionally, $200 million will be in common stock PIPE, priced at $10 per share.
The funds raised will be used to purchase Bitcoin and for company operational purposes.
Tether will simultaneously purchase an equivalent amount of Bitcoin and sell it to Twenty One upon the merger’s completion, ensuring immediate availability of Bitcoin assets.
With 42,000 Bitcoins After Listing, It Will Become the Third Largest Bitcoin Holder Globally
Based on the current Bitcoin price (approximately $93,000 per coin), the estimated asset value of Twenty One upon listing is $3.9 billion.
Twenty One will become the third largest Bitcoin treasury globally, second only to Strategy and Marathon.
Two New Bitcoin Native Metrics: BPS and BRR
Twenty One will no longer use traditional “earnings per share (EPS)” to measure company performance. Instead, it will introduce two Bitcoin-native metrics:
- Bitcoin Per Share (BPS): Represents how much Bitcoin asset each share corresponds to, allowing investors to “hold coins” rather than just shares.
- Bitcoin Return Rate (BRR): Measures the growth rate of Bitcoin assets per share, evaluating company performance based solely on Bitcoin appreciation, disregarding fiat currency returns.
Building a Comprehensive Bitcoin Native Ecosystem from Media to Financial Products
Twenty One is not just holding Bitcoin; it also plans to develop various “Bitcoin-native financial products,” such as DeFi lending tools and Bitcoin capital market products. Concurrently, it will produce Bitcoin-specific content and media, becoming a cultural promoter within the Bitcoin community.
Listing Date and Trading Code
CEP will continue to be traded under the ticker “CEP” on the Nasdaq before the transaction is completed.
After the merger is finalized, Twenty One will be listed under the ticker “XXI.”
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be extremely volatile. You may lose your entire principal. Please carefully assess the risks.