Welcome to US Crypto News Morning Briefing. An essential summary of the most important developments in future cryptography.
While Cantor Equity Partners Inc. (CEP) stock is watching negative side pressure, he’s getting a coffee to understand why Strategic Stock Price (MSTR) stock prices are rising. CEP is the company behind 21 Capital, a Bitcoin model of strategy that mimics newly established companies.
Crypto News of the Day: Max Keizer issues 21 Capital Warnings as CEP Shares sink
The ambitions of 21 capitals to become the next major corporate Bitcoin player are burning. The stock price of holding company Cantor Equity Partners Inc. is bearing the brunt of overhead pressure.
CEP stock has fallen by more than 6% over the past five days. Meanwhile, the share price of market rival Strategy (formerly Micro Strategy) has risen by more than 7%.
With $3 billion investments from Tether, SoftBank, Bitfinex and Cantor Fitzgerald, it’s just three weeks after CEP’s Twenty One Capital was launched.
Twenty One Capital, led by James Mallers, was presented as a strategy-inadvertent market rival or peer. We have introduced BTC-Native metrics such as Bitcoin per share (BPS). This effectively challenges a model of strategies in which investors have indirect exposure to Bitcoin through MSTR stocks.
In a recent US Crypto News publication, Bitcoin Pioneer Max Keizer said that institutions need to “chlorinate” or die. Nevertheless, despite two capitals extending the “Saylorization” trend, CEP stock prices continue to withstand downward pressures while the strategy stock prices rise.
Against this backdrop, investors have hoped that the hype surrounding Cantor Equity Partners Inc.’s planned SPAC merger would reverse the trend, which appears to be a false hope. In particular, due to the merger, CEP stocks are listed on the new ticker XXI.
“Cantor Equity Partners (CEP) has announced its merger with Bitcoin Treasury Company Twenty One Capital in a $3.6 billion merger,” the report states.
The announcement has pushed the stock of SPAC vehicle Cantor Equity Partners (CEP) significantly higher, but its momentum is now waning.
Investors hoping to meet after the merger have seen stocks drift downward towards the mid-$20 period over the past five days.
Beincrypto contacted Max Keizer for insights into why this is happening, and Bitcoin Maxi denounced the imitation strategy of Twenty One Capital’s model.
According to Max Keizer, imitating strategies can be harmful
According to Max Keizer, Twenty One Capital’s attempts to mimic the strategy can be much more risky and less effective.
“There is a big difference between companies with a Bitcoin financial strategy and companies with a Bitcoin strategy,” Keizer told Beincrypto.
According to Keizer, the strategy leverages the weight of a company with a lot of Bitcoin, and uses volatility to buy more BTC. However, Cantor Equity Partners Inc. or Twenty One Capital does not meet that standard.
“CEP is a company that is trying to buy a lot of very unstable Bitcoin. It’s questionable whether it can effectively utilize volatility like strategy,” he added.
Twenty One Capital is the third largest company Bitcoin holder after strategy and bitcoin mining company Mara Holdings. Bitcoin’s Treasury data shows that the strategy holds 568,840 BTC, while Mara holds 48,237 Bitcoin tokens.
Meanwhile, after Tether acquired 4,812.2 Bitcoin (now held in an escrow wallet, as 21 capital prepares to complete a SPAC merger with Cantor Equity Partners), Twenty One Capital holds 36,312 Bitcoin tokens.
Corporate Bitcoin holders by portfolio size. Source: Bitcoin Treasuries.
In an interview with Beincrypto, Keizer clarified that 21 capitals are in a precarious position when they try to copy a model of strategy without infrastructure, discipline or scale.
“Bitcoin strategy companies are inherently risky and there is no clear pathway that is more competitive than a strategy that utilizes market volatility to win more Bitcoin,” he said.
Furthermore, “Even with interest surges from investors hoping to jump on what appears to be the next big BTC play, Keizer believes that the long-term winner is already clear.
“In the end, the big winners will remain a strategy, with dozens of imitations trying to catch them and not generating the same returns, but will significantly increase the increase in demand for Bitcoin.
This coincides with feelings from Stephen Lubuka, head of Swan’s private wealth. As Beincrypto pointed out in one of the US Crypto news publications, Lubka said the careless competition between the 21 capitals and strategies will ultimately go well for strategy.
“Ironically, those who throw gauntlets in micro-strategy simply want to be the most successful company in Bitcoin,” Lubuka said.
The chart of the day
Strategic MSTR stock price performance. Source: Google Finance
The chart shows Strategy Inc.’s stock price rose by $28.61 or 7.28% over the past five days, closing at $421.61 on May 14th.
Cantor Equity Partners (CEP) Stock Price Performance. Source: Google Finance
The chart shows a five-day decline in Cantor Equity Partners Inc. stock price, down 6.22% since May 7th. The CEP closed at $29.84 on Tuesday, attempting to recover pre-market.
Byte-sized alpha
Here’s a summary of more US crypto news that continues today:
- Twenty One Capital has acquired 4,812 BTC for $458.7 million, establishing it as the third largest corporate Bitcoin holder.
- The Bitcoin Spot ETF experienced a net spill of $96.14 million, marking its largest single-day spill since April 16th.
- Nvidia’s rumored Bitcoin investment could boost the market’s appeal and match it with advanced investors, but it remains speculation.
- Robinhood plans to acquire Wonderfi for $178.9 million, advance crypto services and mark its entry into the Canadian fintech market.
- PI Network plans to release the source code after shutting down its central nodes and moving forward with decentralization efforts.
- Internet Capital Market (ICM) tokens transform business investments by allowing users to purchase tokens tied to the concept of apps, offering a decentralized, liquid alternative to traditional equity.
- Aave hit a record $25 billion TVL, gaining 21% of Defi’s market share, surpassing rivals like Lido and Eigenlayer in liquidity advantages.
- Sui’s TVL reached an all-time high of $2.1 billion, reflecting strong growth in Defi and Lending protocols like Navi.
Overview of Crypto Equities Pre-Market
Crypto Equities Market Open Race: Google Finance
