The American Bitcoin company Twenty One Capital, which directly invested in Bitcoin through the world's largest stablecoin issuer Tether, officially began trading yesterday on the New York Stock Exchange under the ticker 'XXI', but its stock price fell nearly 20%. CEO Jack Mallers stated in an interview with CNBC that while Twenty One Capital will also be committed to buying Bitcoin, it is not solely a Bitcoin reserve strategy company; the company will strive to build revenue-generating brokerage, credit, and lending businesses based on Bitcoin.
Who are the investors behind Twenty One?
The American Bitcoin company Twenty One went public through a merger with Cantor Fitzgerald's special purpose acquisition company (SPAC) Cantor Equity Partners, with Jack Mallers, the founder of Strike, serving as CEO. The backing shareholders include Tether, Japan's SoftBank Group, exchange Bitfinex, and Cantor Fitzgerald.
Tether and Bitfinex directly exchanged 31,500 Bitcoins for equity in the new company. SoftBank Group bought Bitcoin with cash through Tether, becoming the second-largest shareholder. Tether's voting rights are as high as 51.7%, giving it absolute power.
According to its real-time reserve proof, Twenty One holds 43,514 Bitcoins, ranking third in the list of publicly traded companies with Bitcoin holdings, only behind MicroStrategy and MARA holdings.
(Investing directly in Twenty One with Bitcoin, Tether's ambitions and blueprint behind it)
XXI dropped nearly 20% on its first day of trading
Jack Mallers, the founder and CEO of Strike, serves as the CEO of Twenty One Capital. Strike is a digital payment provider based on the Bitcoin Lightning Network.
In an interview with CNBC yesterday, Mallers stated that while Twenty One Capital will also focus on buying Bitcoin, it is not just a Bitcoin reserve strategy company. The company will strive to build income-generating brokerage, credit, and lending businesses based on Bitcoin. The support from Tether and SoftBank is extremely important.
However, its stock price is very ungrateful, dropping nearly 20% on the first day of trading, while the company raised $165 million through private equity investment (PIPE) in June at a price of $21 per share. Compared to yesterday's closing price of $11.42, initial investors are facing significant losses.
Image source: CNBC
This article reports that the Bitcoin company Twenty One, led by Tether, officially went public under the ticker XXI, with the stock price plummeting by 20%, first appearing in Chain News ABMedia.
