Holding companies are in vogue

Twenty One Capital wants to become a Bitcoin hoarding superpower. Investors are completely interested.

Last Wednesday, Cantor Equity Partners, a special purpose acquisition company (SPAC), announced its merger agreement with Twenty One, a firm backed by Tether Holdings, its subsidiary Bitfinex, and SoftBank Group. As if they had been shot out of a cannon, Cantor SPAC's shares skyrocketed nearly 200% in just a couple of days. The publicly traded entity already has a market capitalization of $12 billion (on a fully diluted basis), or approximately three times the estimated value of the BTC it claims to have in its portfolio.

Investors have driven up the stock prices of publicly traded companies acquiring cryptocurrencies, Bloomberg explains, pointing to Michael Saylor's Strategy, which owns over $50 billion in BTC.

It is also worth noting that Upexi's shares rose 600% after the company said it was privately raising $100 million to acquire Solana.

The proposed deal with Cantor includes a convertible debt issuance following its closing. Some of Strategy's previous BTC purchases have been financed through the sale of convertible debt and preferred stock.

The appetite for Cantor's SPAC "speaks to the demand for these proxy investment vehicles," said KBW analyst Bill Papanastasiou to Bloomberg.

Both retail and institutional traders spent the latter part of last week buying shares of the speculative blank-check company sponsored by Cantor, expecting it to be ready to accumulate BTC, Papanastasiou stated. For speculators, essentially, Papanastasiou added, "it's like betting on the fastest horse to gain exposure to BTC."

#BTC #SOL