Cantor, Tether, SoftBank Back New Bitcoin Firm

Key Concepts:

• Bitcoin per Share (BPI)
• Bitcoin Return Rate (BRR)
• Accretive Bitcoin Acquisition
• Purpose-built Bitcoin Company
• Operating Company vs. ETF
• Capital Raising for Bitcoin Acquisition

1. Founding Story and Motivation:

• The company, 21, was co-founded by Jack and Tether, who have known each other for over a decade.
• Inspired by Michael Saylor and public companies acquiring Bitcoin.
• Identified a market opportunity to provide "blue chip credibility and startup upside" in the Bitcoin space.
• Aims to be a "pure Bitcoin business," unlike companies pivoting from other sectors.

2. Business Model and Metrics:

• 21 is a "purpose-built Bitcoin company" focused on building Bitcoin products and generating Bitcoin cash flow.
• The goal is to provide Bitcoin per share growth to shareholders.
• Introduced two new metrics:
  • BPI (Bitcoin per Share): Measures the amount of Bitcoin represented by each share of the company.
  • BRR (Bitcoin Return Rate): Tracks the rate at which the Bitcoin per share is growing.
• The CEO's primary responsibility is to grow the Bitcoin per share for shareholders.
• Example: The intent is to grow from 0.05 Bitcoin per share to 0.06, then 0.07, and so on.

3. Operating Company vs. ETF:

• 21 is positioned as an operating company, unlike a Bitcoin ETF, which provides static exposure to Bitcoin.
• The CEO actively works to grow the Bitcoin holdings and increase the Bitcoin per share value.
• The goal is for shareholders to get wealthier in Bitcoin terms, not necessarily to beat the market in fiat terms.
• "An ETF is not an operating company... I get up, I work every day to grow how much bitcoin your share represents on our balance sheet."

4. Strike and Leadership:

• Jack is the CEO of both 21 and Strike.
• Strike is described as an "immensely profitable" business with over 20% EBITDA margin and 85% gross profit margin.
• Strike has only 75 employees, resulting in high gross/net profit per employee.
• Jack believes his purpose is to help Bitcoin change the world and sees both Strike and 21 as contributing to that goal.

5. Capital Raising Strategy:

• Plans to raise capital to acquire more Bitcoin.
• The key rule is that any capital raising must be "accretive," meaning it must increase the Bitcoin per share value.
• The intent is to ensure that shareholders get wealthier in Bitcoin terms.
• Plans to raise capital from various sectors and markets, integrating Bitcoin into the traditional financial system.

6. Stock Exchange Listing and Ticker Symbols:

• Hopeful to have shares listed on a stock exchange under the ticker symbol "XXII."
• Currently trading under "CEP" (Cantor Equity Partners).
• Upon successful merger, the ticker will change to "XXII."

7. Competitive Advantage vs. ETFs:

• The selling point versus ETFs is the potential for active growth of Bitcoin per share.
• The hypothetical scenario is that the Bitcoin per share grows from 0.05 to 0.06 due to deals and product development.
• This growth in Bitcoin exposure is the key differentiator from a static ETF.

8. Conclusion:

21 aims to be a unique publicly traded company that provides investors with exposure to Bitcoin and the potential for growth in their Bitcoin holdings. By focusing on Bitcoin per share as a key metric and actively managing the company's Bitcoin treasury, 21 seeks to offer a compelling alternative to traditional Bitcoin ETFs. The company's success hinges on its ability to execute its strategy of accretive Bitcoin acquisition and product development, ultimately delivering increased Bitcoin wealth to its shareholders.