Twenty One Capital, a financial company focused on Bitcoin, is expected to begin trading on the New York Stock Exchange next week. This comes after the completion of its merger with Cantor Equity Partners, a special purpose acquisition company.
The announcement was made on Thursday, following shareholder approval of the deal at Cantor Equity Partners’ meeting. This approval paves the way for Twenty One Capital to list on the exchange next Tuesday, under the ticker symbol “XXI.”
Final voting results from the shareholder meeting are anticipated to be submitted in a forthcoming Form 8-K filing with the US Securities and Exchange Commission.
Twenty One Capital was launched in April with the objective of accumulating one of the largest corporate Bitcoin treasuries. Its early backers include Cantor Fitzgerald, Tether, Bitfinex, and the venture capital firm SoftBank.
Upon its listing, the company is projected to become the third-largest corporate holder of Bitcoin. It will trail only Michael Saylor’s company, Strategy, and MARA Holdings, a prominent cryptocurrency miner.
With 43,514 BTC currently held, Twenty One Capital’s Bitcoin reserves are valued at approximately $4 billion, according to industry data.
Bitcoin Treasury Firms Face Pressure Amidst Crypto Market Volatility
Companies that hold substantial Bitcoin reserves are experiencing significant strain following a major liquidation event on October 10. This event triggered the largest single-day decline in cryptocurrency history, with over $19 billion in leveraged positions being liquidated.
The widespread market impact has led to a decrease in the value of Bitcoin. After reaching a high point above $126,000 in early October, Bitcoin experienced a sharp decline in November, falling below $80,000 as selling pressure intensified.
The recent market slump has disproportionately affected companies with significant Bitcoin holdings. Strategy, for example, has seen its stock price plummet, significantly reducing the premium it previously held over the value of its Bitcoin reserves.
In this challenging market environment, the long-term viability of corporate Bitcoin treasury strategies is being called into question. The increased volatility and reduced liquidity in the market raise concerns that further downturns could erode existing unrealized gains.