Cantor Equity Soars 11.56% on Bitcoin Venture

On May 1, 2025, Cantor Equity surged by 11.56% in pre-market trading, marking a significant rise in its stock price.

Cantor Equity has recently joined forces with Tether, SoftBank, and Bitfinex to create Twenty One Capital, a Bitcoin treasury vehicle launching with 42,000 BTC (~$4 billion). This alliance aims to position Twenty One as the next evolution of corporate Bitcoin strategy, referencing Bitcoin's 21 million supply cap.

Twenty One Capital will be a Bitcoin-only venture, unlike Strategy, which maintains a software business alongside its Bitcoin treasury. This all-or-nothing approach represents both the venture's greatest strength and its most significant risk, as it will be heavily dependent on Bitcoin's performance.

The complex ownership structure of Twenty One Capital has raised some red flags. Tether and Bitfinex will control 58.8% ownership and 71% voting power, with Tether alone wielding a decisive 51.7% supermajority in voting power. This structure heavily favors early institutional investors over retail shareholders, who might buy in later.

Twenty One Capital's choice of a SPAC merger over a traditional IPO brings both speed and scrutiny. The structure allows Twenty One to bypass some regulatory hurdles while providing Cantor Fitzgerald a lucrative deal. The Cantor connection runs deeper, with Commerce Secretary Howard Lutnick and his son, Brandon Lutnick, playing significant roles in the arrangement.