Although Bitcoin rose about 3% on Tuesday, Twenty One Capital (XXI), a Bitcoin reserve company led by Strike founder Jack Mallers and backed by Tether, faced a severe drop on its first day of trading on the New York Stock Exchange (NYSE), with its stock plummeting nearly 20%.
Twenty One began trading under the ticker symbol 'XXI' on Tuesday after completing its merger with Cantor Equity Partners, a special purpose acquisition company (SPAC) under Cantor Fitzgerald. The stock opened at $10.74 and slightly rose to $11.42 at closing, down 19.97% from the previous day's closing price of $14.27 for the merger target.
After-hours trading slightly rebounded to $11.80, but faced a sharp decline on its debut, indicating that the market still has doubts about the valuation and business model of bitcoin reserve companies.
The listing of Twenty One has gone through months of preparation, backed by support from the Cantor Fitzgerald Group, and heavyweight investors such as Tether and SoftBank have injected capital in bitcoin as part of the transaction.
According to statistics, Twenty One holds a total of 43,514 bitcoins, worth over 4.05 billion dollars, ranking third among publicly traded companies worldwide in terms of bitcoin holdings.
Twenty One CEO Jack Mallers stated during an interview that while Twenty One will continue to accumulate bitcoins, the company's true strategic focus is to establish a revenue-generating 'bitcoin-native business,' covering areas such as brokerage, credit, and lending.
"DAT Topic Cooldown! Bitcoin Reserve Stock Twenty One's First Day of Trading Plummeted Nearly 20%" This article was first published on (Block客).
