Twenty One (XXI) fell 25% early on its first day of trading after finalizing its SPAC merger with Cantor Equity Partners (CEP). Now trading at around $10.50, the stock is at a level that effectively puts the Bitcoin-native company close to its PIPE price of $10.
The company enters the market with the third largest corporate Bitcoin treasury at 43,514 BTC and is backed by Jack Mallers, CEO of Tether, Bitfinex and Strike (who is also CEO of XXI). Its strategy focuses on capital-efficient bitcoin accumulation and bitcoin ecosystem services backed by on-chain proof of reserves.
XXI’s correction is just the latest for this year’s crop of Bitcoin cash companies and follows the debut of Anthony Pompliano’s Bitcoin cash vehicle, ProCap BTC (BRR), which closed its own SPAC deal last week. BRR has plunged more than 60% since then and is now trading at around $3.75, as the PIPE pricing methodology continues to suffer.
The highest-profile US-listed Bitcoin treasury company to fund its vehicle via a PIPE was KindlyMD (NAKA), which is now trading at $0.43 and is down 99% from its all-time high.
Bitcoin itself is little changed over the past 24 hours, at $90,900.
