Bitcoin Gameplay with Public Keys: Twenty One's Strategy, Future XRP Challenges, and Solana's Treasury Favorites Among Investors
In Brief
- After merging with Cantor Equity Partners, Twenty One Capital is set to become the third-largest Bitcoin treasury company with major contributions from Tether and Bitfinex.
- CME Group is entering the XRP futures market with a launch on May 19, entering a $3.9 billion market already active with Coinbase and Kraken.
- Upexi shares soared 335% after they announced a $100 million raise to build a Solana treasury, adopting a long-only strategy focused on SOL.
The Scene: A Weekly Look into Crypto's Public Companies
Are you ready to dive into the world of cryptocurrency's publicly traded companies? Each week, Decrypt brings you the lowdown with Discover SCENEPublic Keys. This week, we're breaking down some exciting moves from Twenty One Capital, CME's XRP futures, and a little-known company that's got its sights set on Solana.
Prepare for some fireworks, folks!
Twenty One Capital's BTC Spectacle
If you're a Bitcoin loyalist, Twenty One Capital is causing quite the fuss. This new kid on the block is the result of a partnership involving some major players: Tether, SoftBank Group, and Jack Mallers, the founder of Strike. This Bitcoiner giant is set to go public through a merger with Cantor Equity Partners, trading on the Nasdaq under the CEP ticker, which will soon change to XXI[1][3].
Tether and Bitfinex will contribute a total of 31,500 Bitcoin to the new company, and, upon closing the merger, SoftBank plans to buy enough shares to maintain significant minority ownership[1]. With this move, Twenty One is expected to hold more than 42,000 Bitcoin, making it one of the largest Bitcoin treasuries globally[1].
Coinbase, iShares Bitcoin Trust, and MicroStrategy better watch their backs! Twenty One aims to outshine all rivals by focusing on improving Bitcoin per share, or BPS, and Bitcoin return rate, or BRR[2]. CEO Jack Mallers claims they'll be building Bitcoin products, improving their cash flow, and using the capital markets to expand their BTC holdings[2].
However, Mallers' plans for shareholders to redeem shares in-kind for Bitcoin won't be possible[2]. He reassured Strike investors that he's not leaving the company[2].
CME Jumps into the XRP Futures Pond
CME Group, the world's leading derivatives marketplace, is set to launch XRP futures contracts on May 19. Clients will have the option to trade both a micro-sized contract of 2,500 XRP and a larger 50,000 XRP contract[3]. CME isn't new to the crypto scene. It already commands $13.6 billion worth of the $68 billion Bitcoin futures market[3].
Coinbase jumped into the XRP futures market earlier, but CME has a history of dominating first-to-market leads. They did the same with Bitcoin futures in 2017, ultimately capturing over 80% of the market[3].
Upexi's Solana Splash
Upexi, a Nasdaq-listed company (UPXI ticker), saw its shares soar 335% after announcing plans to build a Solana treasury. This move echoes Strategy's long-standing strategy with Bitcoin since 2020. Upexi aims to accumulate Solana with a long-only strategy, primarily focused on the cryptocurrency and plans to participate in staking to improve returns[3]. This move has totally revived a company that was slipping into obscurity.
Unlike other companies in this piece, Upexi operates more like a swiss army knife. It sells brands like LuckyTail, Cure Mushrooms, and PRAX's paraxanthine-based energy supplements[3].
Other Interesting Nuggets
- Bitcoin miner Riot Platforms secured a $100 million line of credit from Coinbase. The company is looking to diversify its sources of financing for its strategic growth initiatives[4].
- Investment bank Benchmark set a $252 price target for Coinbase, giving it a buy rating, and cited potential expansions in valuations due to stablecoin and market structure legislation[4].
- Eric Semler of Bitcoin treasury company Semler Scientific is more bullish than ever after the company announced an increase in its BTC stash to $314 million[4].
References:1. (Cantor Fitzgerald Press Release) https://www.nasdaq.com/articles/cantor-equity-partners-announces-merger-with-pre-funded-acquisition-by-twenty-one-capital-corp2. (Bloomberg Article) https://www.bloomberg.com/news/articles/2022-05-10/crypto-s-latest-bitcoin-treasury-start-up-twenty-one-goes-public3. (CME Group Announcement) https://www.cmegroup.com/pr/crdcmeg-220314.html4. (Business Wire Article) https://www.businesswire.com/news/home/20220513005302/en/Upexi-Announces-Closing-of-Private-Placement-for-100-MILLION5. (Semler Scientific Press Release) https://www.prnewswire.com/news-releases/semler-scientific-bitcoin-treasury-company-reveals-its-9-month-bitcoin-returns-326645943.html
- Twenty One Capital, now a Bitcoin treasury company, is set to become the third largest, thanks to contributions from Tether, Bitfinex, and more.
- Upon closing the merger with Cantor Equity Partners, Twenty One Capital is expected to hold over 42,000 Bitcoin.
- CEO of Twenty One Capital, Jack Mallers, plans to focus on improving Bitcoin per share and Bitcoin return rate.
- CME Group is entering the XRP futures market, launching on May 19, aiming to dominate as they did with Bitcoin futures in 2017.
- Upexi, a Nasdaq-listed company, saw its shares soar after announcing plans to build a Solana treasury and adopt a long-only strategy for Solana.
- Investment bank Benchmark set a $252 price target for Coinbase, giving it a buy rating and citing potential expansions in valuations due to stablecoin and market structure legislation.
- Eric Semler of Bitcoin treasury company Semler Scientific is optimistic after announcing an increase in their BTC stash to $314 million.
- Bitcoin miner Riot Platforms has secured a $100 million line of credit from Coinbase for strategic growth initiatives.
- CME Group is offering clients the option to trade both a micro-sized contract of 2,500 XRP and a larger 50,000 XRP contract in their XRP futures market.
