On April 25, 2025, Cantor Equity Partners (CEP) stock soared 134% over the past week following the merger announcement to launch Twenty One – a new Bitcoin company valued at 3.9 billion USD, with support from giants like Tether, Bitfinex, Cantor Fitzgerald, and SoftBank. Can Twenty One reshape the cryptocurrency market? Let's analyze in detail.
Cantor Equity Partners: Stock Surges Before Merger
Cantor Equity Partners (#CEP ), a blank check company related to Cantor Fitzgerald – a crypto-friendly financial group – saw its stock rise 134% over the past week, according to Yahoo Finance. CEP shares, listed on Nasdaq, reached 24.80 USD/share, up 50% just on Thursday (April 24, 2025). The price surge was driven by the announcement on April 23 that CEP would merge to launch Twenty One – a new Bitcoin company via a SPAC (Special Purpose Acquisition Company), allowing this company to go public.
Twenty One: A 3.9 Billion USD Bitcoin Company
Twenty One is a company focused on Bitcoin, expected to launch with a reserve of over 42,000 $BTC – valued at approximately 3.9 billion USD (at the current Bitcoin price of 85,000 USD). The company not only accumulates Bitcoin to provide investors the opportunity to access this asset without direct ownership but also offers financial services related to Bitcoin and develops content and media about crypto. Twenty One will trade under the ticker XXI.
The project receives substantial backing from top names: Tether (USDT market cap of 119 billion USD), exchange Bitfinex, Cantor Fitzgerald, and SoftBank group. CEP, led by Brandon Lutnick – son of US Commerce Secretary Howard Lutnick (former CEO of Cantor Fitzgerald) – will assist in raising funds for Twenty One. The company plans to raise 385 million USD through senior convertible bonds and 200 million USD via private investment in public equity (PIPE) to purchase Bitcoin and serve general corporate purposes.
Leadership Team and Role of Partners
The CEO of Twenty One is Jack Mallers, head of Strike – a well-known Bitcoin payment company. Cantor Fitzgerald, the managing unit of Tether's reserves (which backs the value of USDT – the largest stablecoin in the world), plays a crucial role in financial support and custody. USDT, with a stable value pegged to the USD, is the backbone of the crypto economy, widely used for trading and executing orders. The involvement of SoftBank – a Japanese investment group – further adds credibility to the project, especially as Japan is emerging as a crypto hub (Metaplanet owns 4,855 BTC, ANAP Holdings bought 16,6591 BTC).
Impact on the Crypto Market
The launch of Twenty One brings many positive signals for the cryptocurrency market:
Increased institutional confidence: The collaboration of giants like Tether, Bitfinex, and SoftBank with CEP to launch Twenty One shows strong confidence in Bitcoin, especially as companies like Abraxas Capital (purchased 3,000 BTC) and Strategy (531,644 BTC) are also accumulating significantly.
Investment diversification: Twenty One not only accumulates Bitcoin but also offers financial services and crypto content, opening up opportunities for investors to access digital assets through listed shares rather than direct ownership.
Promoting acceptance: With a reserve of 42,000 BTC, Twenty One may reduce the circulating supply of Bitcoin, creating upward price pressure in the long term, especially as 'whales' are absorbing over 300% of the annual issuance supply (according to Cointelegraph).
Market Context and Prospects
The crypto market is witnessing many positive developments. Bitcoin remains at 85,000 USD, while the USD weakens (USDX hit a new low of 97.9 on April 21, 2025, according to FXCE), supporting prices of risk assets. Other initiatives, such as El Salvador's tokenized real estate 'sandbox' with the SEC, or CME Group's XRP futures, also demonstrate strong industry growth. In this context, Twenty One has the potential to become a crucial player, not only boosting Bitcoin's value but also shaping how investors approach cryptocurrencies through the stock market.
Conclusion: Will Twenty One Change the Crypto Game?
The launch of Twenty One, with a Bitcoin reserve of 3.9 billion USD and backing from Tether, Bitfinex, Cantor Fitzgerald, and SoftBank, is a significant milestone for the crypto market. The 134% surge in CEP stock reflects high expectations from investors, while the plan to accumulate 42,000 BTC and provide crypto financial services could reshape the approach to digital assets. Will Twenty One become a 'game changer' in the cryptocurrency space? Investors should closely monitor to seize opportunities from this wave.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.