This purchase, disclosed in an SEC filing recently, makes the company the third largest corporate Bitcoin holder. Tether, Bitfinex and Cantor are supporting the firm, which plans to exceed Michael Saylor’s Strategy in Bitcoins per share. GDC, a Nasdaq listed company, announced that it would raise $300,000,000 to create a crypto-treasury including Bitcoin, TRUMP, and other tokens. Bitcoin remains range bound near $104,000 despite growing interest from institutions.
Two Capital Races for Overtaking Strategy
Tether, which issues the stablecoin that is the most popular in the world, USDT, has recently purchased $458.7 Million worth of Bitcoin for Twenty One Capital. Twenty One Capital is an investment company it supports. Cantor Equity Partners disclosed the purchase in an SEC filing on May 13, and it included the acquisition of 4,812.2 BTC for $95,319 each. On May 9, the Bitcoins were transferred to an escrow account.
Twenty One now has 36,312 BTC in total, making it the third-largest corporate Bitcoin holder. It trails only behind Strategy, with 568,840 BTC, and Bitcoin mining company MARA Holdings with 48,237 BTC, according to data from BitcoinTreasuries.net. Cantor Equity Partners is holding 31,500 BTC for Twenty One. They are also helping to facilitate a SPAC merge that will allow the company to be listed under “XXI”.
Top Bitcoin holders ( BitcoinTreasuries.net)
Jack Mallers is the CEO and head of Strike of Twenty One. He confirmed the approval of the company’s merger but didn’t specify the completion date. Tether, along with Bitfinex and Twenty One, holds a majority of the shares. Cantor Fitzgerald is the sponsoring company for the SPAC transaction, which secured funding in the amount $585,000,000 to help support Twenty One’s Bitcoin acquisition plan.
SoftBank, a Japanese investment firm, also contributed $900 millions to Twenty One to boost its ambitions. Twenty One stated in filings made in April that it aimed to surpass Michael Saylor’s Strategy, as the best vehicle for capital-efficient Bitcoin exposure. Twenty One will measure its performance by “Bitcoins per Share” instead of traditional metrics such as earnings per share.
Twenty one vs. Strategy (SEC )
By launch, the company plans on reaching 42,000 BTC. Contributions include 23,950 BTC coming from Tether and SoftBank. Around 7,000 BTC will come from Bitfinex. These BTCs will then be converted into equity shares at $10 each. Cantor Equity Partners shares rose 5.2% after hours trading following the Bitcoin acquisition. However, they have fallen from their peak price of $59.73 on May 2, to about $29.84.
GDC joins the Bitcoin Treasury Trend
GD Culture Group, a Nasdaq listed microcap company recently revealed plans to raise $300 million for a cryptocurrency treasury. On May 12, the company and its subsidiary AI Catalysis announced that they had entered into a stock purchase agreement to sell common stocks up to $300,000,000 with an entity based in British Virgin Islands. As part of the company’s strategy to integrate cryptocurrency assets into its Treasury operations, funds will be raised to purchase Bitcoin and Official Trump (TRUMP).
GDC said that the initiative was designed to align GDC with a broader movement of decentralization and to support blockchain-based infrastructure. GDC Chairman and CEO Xiaojian Wang stated that this move leverages GDC’s strengths, including digital innovation and livestream e-commerce. It also positions the firm for a future based on blockchain technology.
GD Cultural Group Stock Price over the last year (Nasdaq ).
GDC made the announcement despite regulatory obstacles. Nasdaq issued a noncompliance notice to the company after they reported that their stockholders equity was only $2643, far less than required. GDC had until the 4th of May to present a plan for compliance. The firm has 180 days to comply with Nasdaq listing standards if it is accepted.
GDC announced its acquisition of TRUMP, a crypto asset. The top 25 TRUMP holders will attend a dinner in the White House on May 22. In order to avoid any additional costs for this dinner, the meme coin project has already stopped considering them. Attendees have also been required to submit background checks.
Some US legislators and regulatory experts have been very critical of this event. Senator Cynthia Lummis expressed concerns about the exclusive nature of the dinner, which was only open to top token holders. She also said that this raised ethical issues. Legal experts warned also that the Trumps’ increasing involvement with crypto may invite increased scrutiny by the SEC.
Bitcoins are still a hot topic of debate
BTC was again under pressure to sell as the US stock markets opened up on 13th May. The same thing happened even though encouraging data on inflation sent traditional stock prices higher.
The price of BTC over the last 24 hours. ( CoinMarketCap )
BTC/USD has once again fallen below $104,000, defying the expectations of lower inflation than expected to boost risk assets. The Consumer Price Index, according to the US Bureau of Labor Statistics rose only 2.3% over the past year in April. This was the lowest increase since the month of February 2021. Bitcoin’s value remained stagnant, while the S&P 500 gained 0.7% in April and Nasdaq 1.4%.
Analysts noted that Bitcoin was hovering near liquidity zones. This suggests a temporary stop in the direction of momentum. The data from CoinGlass showed that upward and downward clusters of liquidity were removed, prompting trader Daan crypto Trades to say that the market is now range bound with minimal liquidity. He predicted that the market would drop by around $100,000, and it did.
Crypto analyst Michael van de Poppe said that Bitcoin’s current stalling is not alarming. He explained that even a drop to $97,000-$97,500 will maintain the overall uptrend towards new highs.
QCP Capital said that Bitcoin is still stuck between being a digital asset and a high-risk one, creating a lack in direction for the short term. The evolving macro-environment, which is shifting away from protectionist policies and towards global trade optimism could be keeping BTC prices sideways.
Some voices are very bullish despite the current price decline. Binance CEO Richard Teng emphasized Bitcoin’s performance in comparison to other assets and stated that Bitcoin has outperformed gold, S&P 500 and Nasdaq by a wide margin since April 2, 2018. Bitcoin’s growth was also described as “undeniable” by Teng.
