If you have a big pot of crypto, you will want a public company, so there is a good business in supplying public companies to crypto investors. (Particularly small public companies that don’t have much in the way of existing operations, so that they can easily pivot to just holding crypto.) If you have a $100 million pot of Bitcoin, merging with a public company will make it worth $200 million, so you would happily pay, like, $40 million to the people who own the public company, even if it has no value other than its public listing.

If you have a big pot of crypto, you should not sell it to a crypto buyer. You should sell it to the stock market. If you own 1,000 Bitcoins, those are worth $118 million if you sell them on the Bitcoin market, but $236 million if you take them public as a crypto treasury company.

If you sell Bitcoins on the Bitcoin market, you only get the price of Bitcoin! If you package your Bitcoins into a stock, you can sell them at a 100% premium! ... Cantor’s currency — shares of a public Bitcoin company — is **worth more than cash. **

1. accumulate "bitcoinz"
2. get your hands on a publicly listed company (=specialized, privileged access to the capital markets)
3. say random shit about bitcoin innovation "the future of money, Bitcoin capital markets services, etc."

But WHYYY?

As David Bailey says, “If you can sell a dollar for more than a dollar, you do that trade all day long.” (#1019573, https://bitcoinmagazine.com/takes/are-bitcoin-treasury-companies-ponzis)

"There is enormous value to be captured by moving Bitcoins into the public market, and everyone with a pot of Bitcoins wants that value for themselves."

On the first point, we talk a lot around here about small public companies that get gobbled up by crypto entrepreneurs so they can pivot to being crypto treasury companies. But this is inefficient and haphazard: If you want to take a pot of crypto public on the stock exchange, why should you have to find some defunct public biotech company, negotiate with its executives, strike a deal, lay off the biotech researchers, etc.?

In particular, Cantor Fitzgerald LP is in this business: the general business of raising SPACs, and the specific business of merging SPACs with pots of Bitcoin. We talked in April about Cantor Equity Partners Inc., a Cantor SPAC that announced a deal with Bitfinex/Tether and SoftBank to wrap their Bitcoins in a public company. The company will be called Twenty One Capital Inc., and the SPAC’s trading price currently implies about a 200% premium on the value of its Bitcoins. That’s a great trade for Tether and SoftBank. And for Cantor, which sponsored the SPAC and stands to make a lot of money on the deal.

Sure, of course. BSTR has, let’s say, 30,021 Bitcoin. Those would be worth about $3.5 billion if it sold them, but if it takes them public they should be worth at least $7 billion. Cantor Fitzgerald is in the business of supplying public companies to pots of Bitcoin, so BSTR is combining with Cantor Equity Partners I — not to be confused with Cantor Equity Partners, which did the Twenty One deal — to take its pot of Bitcoins public. BSTR’s Bitcoins will be worth more on the stock exchange than they are as Bitcoins, and Cantor, as the SPAC sponsor, will get a cut.

At noon today, the SPAC’s stock was trading at around $13.93 per share, implying only about a 39% premium on BSTR’s stash of Bitcoins, well below my normal expectations of 100+% premiums. Perhaps the market for this sort of thing is finally getting a bit saturated? (even worse now... only +16%, given that I got the right ticker https://finance.yahoo.com/quote/CEPO/)

Here's an interesting comment... they all just become one/cannibalize each other, or merge into a single, massive BTC entity??

Why do investors need a choice of two more-or-less identical pristine pots of Bitcoin? (Not to mention all the other ones out there, plus MicroStrategy Inc.: I just mean that there are two big pots of Bitcoin that are going public via Cantor Fitzgerald SPACs within a few months of each other.)