21 Capital is a newly formed Bitcoin-focused investment company founded and backed by Tether, Cantor Fitzgerald, and SoftBank Group. Jack Mallers will serve as CEO



21 Capital aims to emulateMore information and even rivala detailed description of the successprocess that will lead to the creation of Strategy, formerly known as “MicroStrategy”)21 Capital can be found in the official statement by accumulating Bitcoin as a primary treasury.Cantor:

Tether, SoftBank Group, and Jack Mallers Launch Twenty One, a Bitcoin-native Company, Through a Business Combination With Cantor Equity Partners

The funding structure of 21 Capital is structured as follows:

• Tether up about $1.6 billion in Bitcoin
• SoftBank  about $0.9 billion in Bitcoin
• Bitfinex about $0.6 billion in Bitcoin​
• Cantor Equity Partner about $0.2  billion in Equity
• Cantor Equity Partner about $0.585  billion in pledged investments
  
  • 385 Millions Senior Secured convertible Notes
  • 200 Millions Equity PIPE

With a planned public listing via a special-purpose acquisition company (SPAC) and over 42,000 BTC (worth roughly $3.6 billion) committed at launch, 21 Capital would immediately rank third among the largest corporate holders of Bitcoin.

Initially, the corporate valuation would be pegged at the treasury valuation. This represent a solid discount if compared to Strategy, which trades at 2x the value.



21 Capital aims to emulate and even rival the success of Strategy, formerly known as “MicroStrategy”) by accumulating Bitcoin as a primary treasury.

KPI will be similar to the one tracked by Strategy
21 Capital will have some advantage over Strategy:



At the moment 21 Capital is still incorporated in Cantor Equity Partner.
Nice trading over the last sessions:



I have to discover more.

Quote

A New Era: Measuring Success in Bitcoin
Twenty One is built to accumulate Bitcoin and grow ownership per share, not just track it.
As part of its launch, Twenty One will introduce two key performance metrics, to reflect its Bitcoin-denominated capital structure and Bitcoin-focused mindset.

• Bitcoin Per Share (BPS): Amount of Bitcoin each fully-diluted share represents, reflecting shareholder ownership in Bitcoin rather than fiat earnings per share
• Bitcoin Return Rate (BRR): Rate at which BPS grows over time, denominating the company's performance in Bitcoin

Strategy has almost the same KPI: the meaning of this is that the key success metrics will be Bitcoin denominated. Once again, the target of the investment is increasing the number of satoshis per shares, offering a positive Bitcoin Yield, something that is already a market practice in Hedge Funds investing in Bitcoin.

Also, the set of instruments by 21 Capital to attain this result will be similar to Strategy's one:

Quote

Twenty One and CEP have also entered into subscription agreements with investors to raise, at closing, $585 million of total additional capital consisting of (i) $385 million through convertible senior secured notes and (ii) $200 million through a common equity PIPE financing (the "PIPE Offerings", and together with the Business Combination, the "Proposed Transactions"). The net proceeds from the PIPE Offerings, which will close contemporaneously with the Business Combination, will be used to purchase additional Bitcoin and for general corporate purposes.  

21 Capital will use a combination of debt and equity instruments to finance the buying of bitcoin. The press release covers only the initial offerings, but I have no reason to doubt that the recipe will be repeated frequently, as Strategy has done after their initial purchase.

• Debt: Convertible Senior Secured Notes.
  Convertible Senior Secured Notes are a type of debt instrument, combining features of debt and equity securities.
  
  • Convertible
    Convertible notes can be exchanged (converted) into a specified number of shares of the issuer's common stock, a predetermined price or conversion rate. Investors have the option, to convert their debt into equity, usually when the company's stock price rises above a certain level. When it happens, the capital returned to investors exceeds the one they subscribe to the notes.  Convertibility gives investors potential participation in the company's growth through equity.
  • Senior
    "Senior" means these notes rank higher than subordinated debt or equity in the company's capital structure. If the company faces bankruptcy or liquidation, senior debt holders have a higher priority for repayment compared to junior (subordinated) creditors (Shareholders have an even lower priority). Seniority reduces investor risk, thus reducing the issuer's debt cost.
  • Secured
    Secured notes are backed by collateral or specific assets of the issuing company. In case of default, investors holding secured notes have claims against these pledged assets, which increases their chances of recovering their investment. In this case, the notes are secured by the Bitcoin resulting from the buy with the proceeds. Again, together with Seniority, this reduces the risk of the debt for the investor and the cost for the issuer.
    
    

• Equity: PIPE Offerings
  A PIPE Offering (Private Investment in Public Equity) is a financing arrangement in which institutional investors (accredited investors, banks, or hedge funds) directly purchase shares from a publicly traded company at a negotiated price.
  In essence, these are private placements: the shares are sold privately without initial public offering registration or wide public marketing to raise capital quickly with less regulation than traditional public offerings.
  

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I am travelling as it it holiday in Italy.
I will have little or no time in the coming days to write this article, but this is too important not to be tracked. I will write this on my mobile. Trying to organise all the material. This will be a different animal from my "research first",  write later long forms.
Keep the OP under review, as it will be constantly updated.

21 Capital is a newly formed Bitcoin-focused investment company founded and backed by Tether, Cantor Fitzgerald, and SoftBank Group. Jack Mallers will serve as CEO



21 Capital aims to emulate and even rival the success of Strategy, formerly known as “MicroStrategy”) by accumulating Bitcoin as a primary treasury.

With a planned public listing via a special-purpose acquisition company (SPAC) and over 42,000 BTC (worth roughly $3.6 billion) committed at launch, 21 Capital would immediately rank third among the largest corporate holders of Bitcoin.

Initially, the corporate valuation would be pegged at the treasury valuation. This represent a solid discount if compared to Strategy, which trades at 2x the value.



KPI will be similar to the one tracked by Strategy

At the moment 21 Capital is still incorporated in Cantor Equity Partner.
Nice trading over the last sessions:



I have to discover more.

---

I am travelling as it it holiday in Italy.
I will have little or no time in the coming days to write this article, but this is too important not to be tracked. I will write this on my mobile. Trying to organise all the material. This will be a different animal from my "research first",  write later long forms.
Keep the OP under review, as it will be constantly updated.

21 Capital is a newly formed Bitcoin-focused investment company founded and backed by Tether, Cantor Fitzgerald, and SoftBank Group. Jack Mallers will serve as CEO



21 Capital aims to emulate and even rival the success of Strategy, formerly known as “MicroStrategy”) by accumulating Bitcoin as a primary treasury.

With a planned public listing via a special-purpose acquisition company (SPAC) and over 42,000 BTC (worth roughly $3.6 billion) committed at launch, 21 Capital would immediately rank third among the largest corporate holders of Bitcoin.

Initially, the corporate valuation would be pegged at the treasury valuation. This represent a solid discount if compared to Strategy, which trades at 2x the value.



KPI will be similar to the one tracked by Strategy

I have to discover more.

---

I am travelling as it it holiday in Italy.
I will have little or no time in the coming days to write this article, but this is too important not to be tracked. I will write this on my mobile. Trying to organise all the material. This will be a different animal from my "research first",  write later long forms.
Keep the OP under review, as it will be constantly updated.

21 Capital is a newly formed Bitcoin-focused investment company founded and backed by Tether, Cantor Fitzgerald, and SoftBank Group. Jack Mallers will serve as CEO

21 Capital aims to emulate and even rival the success of Strategy, formerly known as “MicroStrategy”) by accumulating Bitcoin as a primary treasury.

With a planned public listing via a special-purpose acquisition company (SPAC) and over 42,000 BTC (worth roughly $3.6 billion) committed at launch, 21 Capital would immediately rank third among the largest corporate holders of Bitcoin.

Initially, the corporate valuation would be pegged at the treasury valuation. This represent a solid discount if compared to Strategy, which trades at 2x the value.



KPI will be similar to the one tracked by Strategy

I have to discover more.

---

I am travelling as it it holiday in Italy.
I will have little or no time in the coming days to write this article, but this is too important not to be tracked. I will write this on my mobile. Trying to organise all the material. This will be a different animal from my "research first" write later.
Keep the OP under review, as it will be constantly updated.