"You can just do things," Jack Mallers snuck into a primetime Bloomberg clip yesterday when he announced the new Twenty One Capital pure bitcoin play... bitcoin-per-share, bitcoin yield, accumulating stash, tradfi-fluent bitcoin acquisition model.
So MicroStrategy on stilts.
Today, then, Matt Levine has a field day:
The basic situation is that US public equity markets will pay about $2 for $1 worth of Bitcoin. I don’t know why this is, and I am not especially happy about it, but it’s true. If you have one Bitcoin, you can sell it on a crypto exchange for about $93,000, or you can sell it on a US stock exchange for about $186,000. Therefore, you should sell Bitcoins on the stock exchange, so people do.
At noon today, Cantor Equity Partners was trading at about $28.34 per share, almost triple its pre-deal price. That implies a value for Twenty One’s 36,210 Bitcoins of about $9.8 billion, [4] or about $270,000 per Bitcoin. Again, Bitcoin is trading at around $93,000 today on crypto exchanges. If you can sell Bitcoin for $270,000 on the Nasdaq, you’d be crazy to sell it for $93,000 on a crypto exchange
Their SEC schematics also seemed weird... more pure play than MSTR; less insiders, more "new" debt
MAX IRONY:
lot of people in traditional finance, certainly including me, like to make fun of crypto. There is a lot to make fun of. But who is traditional finance to talk? The uncomfortable fact is that the stock market will pay much more for crypto than the crypto market will: Packaging Bitcoin into a stock makes it much more valuable. The crypto enthusiasts on the stock market are more enthusiastic about crypto than the crypto enthusiasts in crypto. It looks a little bit like crypto keeps playing a prank on the stock market, and the stock market keeps falling for it.
even funnier?
The acquisition vehicle SPAC itself, doing nothing but holding bitcoin and using financial engineering to acquire more, itself saw its share triple in value (#957031). My god, this is a joke... efficient funny-market hypothesis.
When they said "Bitcoin breaks all the models" it wasn't this I had in mind...
Oh, also funny (sort of related) quote in the next story re: $Trump dinner (largest token-holders of Trump's shitcoin get a dinner with the man himself:
It is the democratization of … bribery? Now everyone can compete on a level playing field to hand the president money, and whoever hands him the most money gets dinner with him. I mean! Okay!
non-paywalled here:
https://newsletterhunt.com/emails/186052