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 (-0,25%) 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 $MSTR (+5,34%). It will be implemented via SPAC Cantor Equity Partners. This listed shell company has raised US$ 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 (+5,34%) and $MARA (+2,35%) 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
