Shares of Cantor Equity Partners (CEP) experienced a significant surge of 134% over the past week, with a notable 50% increase on Thursday, following the announcement of a planned merger to form a new Bitcoin-centric company named Twenty One. The Nasdaq-listed shares were trading at approximately $24.80 prior to the announcement.
The merger, which involves a Special Purpose Acquisition Company (SPAC), aims to launch Twenty One as a publicly traded entity with a focus on Bitcoin investments. The company plans to debut with a treasury of over 42,000 BTC, valued at approximately $3.9 billion at current market prices.
Twenty One’s strategy includes not only accumulating Bitcoin but also providing financial services related to the cryptocurrency and creating media content focused on crypto. The initiative is backed by major players in the industry, including stablecoin issuer Tether, crypto exchange Bitfinex, and investment firms Cantor Fitzgerald and SoftBank.
Brandon Lutnick, who leads Cantor Equity Partners, is the son of Howard Lutnick, the current U.S. Commerce Secretary and former CEO of Cantor Fitzgerald. Under the merger plan, Twenty One will be led by Jack Mallers, the CEO of Bitcoin payments company Strike.
To facilitate its objectives, CEP plans to raise $385 million through convertible senior notes and an additional $200 million via private investment in public equity (PIPE). These funds will be utilized to acquire Bitcoin and support general corporate operations.
Once established, Twenty One will trade under the ticker symbol XXI, providing investors with an opportunity to gain exposure to Bitcoin without directly holding the asset.
