Cantor Equity Partners (CEP) shares experienced a massive 134% surge last week, up 50% on Thursday, following the announcement of plans to set up a new Bitcoin-centric company named Twenty One. Listed NASDAQ shares were trading at around $24.80 prior to the announcement.
The merger, which includes a special purpose acquisition company (SPAC), aims to launch Twenty One as a public entity focused on Bitcoin investment. The company is set to debut at the Treasury Ministry of BTC, worth around $3.9 billion at its current market price.
Twenty One’s strategy includes not only accumulating Bitcoin, but also providing cryptocurrency-related financial services and creating crypto-focused media content. The initiative is supported by leading players in the industry, including Stablecoin Issuer Tether, Crypto Exchange Bitfinex, investment firms Cantor Fitzgerald and SoftBank.
Brandon Lutnick, who leads Cantor Equity Partners, is the son of Howard Lutnick, the current Secretary of Commerce and former CEO of Cantor Fitzgerald. Under the merger plan, the 21 will be led by Jack Mallers, CEO of Bitcoin Payments Company Strike.
To promote its goal, CEP plans to raise $385 million through convertible senior notes and an additional $200 million through private investments from Public Equity (Pipe). These funds are used to acquire Bitcoin and support general business operations.
Once established, Twenty One trades under the ticker symbol XXI, offering investors the opportunity to touch Bitcoin without directly holding assets.