Cantor Surges Amid Bitcoin SPAC Merger
Deal News | Apr 27, 2025 | EIN
Cantor Equity Partners (CEP) stocks have seen a dramatic increase, more than doubling in value over two days due to the announcement of a merger with Twenty One Capital. The latter is a crypto-focused investment vehicle backed by Tether, Bitfinex, and SoftBank Group. Post-merger, the publicly listed entity will be rebranded as XXI and aims to offer Bitcoin institutional exposure, with initial Bitcoin holdings valued at approximately $3.92 billion based on the current Bitcoin price. This strategic move will mark Cantor's transformation into a significant player in the Bitcoin investment space, introducing novel financial metrics such as Bitcoin Per Share and Bitcoin Return Rate to align with the crypto market. Public shareholders will retain a minor stake after completion.
Sectors
- Cryptocurrency
- Financial Services
- Investment Management
Geography
- United States – Cantor Equity Partners is based in the U.S., and the stock market activity is taking place here.
- Japan – SoftBank Group, a major stakeholder in the merging entity, is based in Japan.
Industry
- Cryptocurrency – The merger involves Bitcoin, indicating a pivotal role in the cryptocurrency sector.
- Financial Services – Cantor Equity Partners operates in the financial services sector, focusing on investment and equity services.
- Investment Management – Twenty One Capital's initiative to become a public proxy for Bitcoin indicates investment management activities.
Financials
- 120% – The percentage increase in Cantor's stock over two days.
- $39.29 – The record high stock price of Cantor Equity Partners on Thursday.
- 42,000 BTC – The projected initial Bitcoin holdings of the merged company Twenty One Capital.
- $3.92 billion – The estimated value of initial Bitcoin holdings by the merged company.
- 2.7% – The ownership stake retained by public shareholders in the SPAC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cantor Equity Partners | Target company | Company | An equity investment firm whose stock surged following a merger announcement. |
| Twenty One Capital | Bidding Company | Company | A Bitcoin-native investment vehicle merging with Cantor Equity Partners. |
| Tether | Investor | Company | The world's largest stablecoin issuer, backing Twenty One Capital. |
| Bitfinex | Investor | Company | A crypto exchange holding a significant stake in the merged entity. |
| SoftBank Group | Investor | Company | A Japanese multinational conglomerate holding a significant stake in the merged entity. |