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21 Capital - New "MicroStrategy"?

It's getting wild again😂

Under the leadership of Brandon Lutnick - the son of the current US Secretary of Commerce and chairman of the investment bank Cantor Fitzgerald - the Japanese SoftBank Group, the stablecoin giant Tether and the crypto exchange Bitfinex are cooperating to invest billions in $BTC (-0.55%) to invest billions in A company called 21 Capitalwhich will hold around 3 billion US dollars in Bitcoin from the outset and serve as a listed "Bitcoin purchase vehicle".

21 Capital is to be founded from the outset with the sole purpose of buying and holding Bitcoin👀

21 Capital is designed as an acquisition company for Bitcoin - comparable in essence to the business model of $MSTR (+0.07%). It will be implemented via SPAC Cantor Equity Partners. This listed shell company has raised US$ 200 million in fresh capital and will merge with a new company - 21 Capital. This SPAC deal means that 21 Capital can be listed directly on the stock exchange without a traditional IPO:

According to the Financial Times and official figures, the initial bitcoin investment adds up to around 3 billion US dollars. Specifically, Tether is providing US$ 1.5 billion, SoftBank US$ 900 million and Bitfinex US$ 600 million - each in the form of Bitcoin transfers to the new company. These Bitcoin transfers are valued at a reference price of USD 85,000 per BTC, and in return the partners receive shares in 21 Capital at a price of USD 10 per share. Through this structure, investors effectively swap part of their Bitcoin holdings for ownership shares in the new company.

As a result, 21 Capital will launch with over 42,000 BTC and become the third largest Bitcoin treasury worldwide, behind $MSTR (+0.07%) and $MARA (-1.78%) and .

It was also announced that none other than Jack Mallers (founder of Strike) will take on the role of CEO.

Investment strategy: build up and expand Bitcoin reserve

Similar to the Strategy model, 21 Capital will not stop at the initial investment, but will continue to buy more Bitcoin. The business model of a "Bitcoin Treasury Company" consists of raising fresh money via the capital markets and converting it into BTC. Accordingly, the Lutnick consortium is already planning additional financing measures: An issue of convertible bonds worth USD 350 million is planned, as well as a private placement of shares worth USD 200 million in order to acquire more Bitcoin on the market in the next step. According to the official update, the target figures for the bond have even been raised to USD 385 million. This mix of debt and equity is exactly in line with the strategy MicroStrategy has pursued in recent years - Michael Saylor has repeatedly diluted shares and issued bonds to increase his company's Bitcoin position. The press release states that the company is designed to accumulate as much Bitcoin as possible and to steadily increase the Bitcoin holdings per share.

This means that future capital increases will be consciously accepted (even if they dilute the shares of existing shareholders) as long as the fresh capital is used to acquire more BTC. This should be worthwhile for shareholders, as every dollar invested increases the value of the Bitcoin treasury disproportionately - and therefore the share value in the long term. Or as Jack Mallers puts it: "We believe Bitcoin is the answer, and Twenty One is the way we are bringing that solution to the public markets. Our mission is simple: we want to become the most successful company in Bitcoin... A public stock built by Bitcoiners, for Bitcoiners".

There is no traditional core business; growth is to be generated exclusively through value appreciation and the increase in Bitcoin reserves.

What do you think?

https://www.ft.com/content/501210ad-d39b-4d7b-b649-bbd08ceffe6f

www.ft.comCantor strikes $3.6bn crypto venture deal with SoftBank and Tether

37 Comments

“Klaatu_Barada_Nikto!“@Ash

I was a little torn as to what I should think of it, as I am initially very skeptical of a son of a minister in the Trump administration who has not covered himself in glory so far. But when I read Jack Maller's name, I was really surprised, as I really appreciate the guy and his Bitcoin insights and his talks are always great. I just hope he doesn't burn his fingers or get burned in the role. Otherwise it's nothing other than the $MSTR approach. In any case, I will continue to invest directly in $BTC.

@stefan_21 What do you think of the $MSTY? Bruce also made a video about it.

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View all 28 further answers

Olli@Olli68

In the past, this was only known from African regimes.

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Stefan21@stefan_21

@Olli68 Bitcoin Treasury company?🤪

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doyoueventradebro@doyoueventradebro

nepobaby of a dumbatz, what could go wrong...

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C.S.@sobrius

13H

🤣 Wow. This press release made me laugh out loud. I'm currently holding again $BTC, but this clearly a gambling post. Selling this purest of pure hardcore speculation with Nepo baby character and Trump drift odor as a serious investment...sign of the times.

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Stefan21@stefan_21

13H

@sobrius wait and see :)
Microstrategy has outperformed pretty much everything since this strategy. With Mallers as CEO, I see this as quite positive.
But if Bitcoin is already a hardcore speculation for you and you don't understand Microstrategy's business model, that's certainly hilarious :) I can understand that.

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Silas W.@DynasticGrind

Wonderful beef!

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Thilo M.@ThiloM

Sounds like the Benco 2.0 business model.
It's best to gamble with BTC for a short time and then sell it when the next bank/group thinks it can make a killing. I hold a little BTC to take advantage of the fun factor.

Think about it: 1-3 companies own all the bitcoins in the world... where is the exorbitant increase in value supposed to come from?

Gold would have the same problem if it hadn't been distributed for 4000+ years and everyone had an almost divine belief in its value. (The BRAND is strong 😉)

As long as products (e.g. in Africa) still convert FIAT -> BTC to pay in BTC instead of local currency, the basis is and remains FIAT.
If this were to change and I had to buy my bread with 0.00001 BTC, which in principle only belongs to 1-3 companies. Every movement would catapult the price to infinity. So a large-scale benefit would be impossible and the bubble would be too big
...so halleluia you millions of FIAT loans that got diluted shares in return or even repayments with Ponsi scheme.

Think about it before you "invest" your relatives' money. Mine should rather buy $BRK.B. ✌️

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Stefan21@stefan_21

40Min

@ThiloM wait and see :)
Cantor, Tether and SoftBank are not gamblers. And with Mallers as CEO, I'm not worried.

How are 1-3 companies supposed to own all the Bitcoin in the world if only around 2 million are tradable on the market? The more the supply on the market decreases, the more the price increases and in turn the incentive for Bitcoin holders to sell something. The distribution of Bitcoin has improved significantly in every cycle so far.
So the assumption that 1-3 players could just buy up the entire supply is nonsense.

What makes you think that we should already be calculating in BTC? Are you aware that we use money that is imposed on us by states? Of course, without free currency competition, calculations are made in the national currency. It takes an extremely long time for the market to change that.

It is also nonsense that the price will catapult to infinity if you calculate in Bitcoin. If Bitcoin is the unit of account, what is it supposed to catapult to infinity in? While the euro, dollar and the like are constantly changing as the money supply expands, Bitcoin remains constant with fixed monetary rules. You can also ask yourself what actually fluctuates - Bitcoin or fiat?

The millions of fiat loans and Ponzi scheme shows me that you don't understand the business model.

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