A Mini-MicroStrategy
Nuts — just the way I like it.
Tether, SoftBank Group, and Jack Mallers Launched Twenty One, a Bitcoin-native Company, Through a Business Combination With Cantor Equity Partners (CEP). These are big names. The biggest name isn’t mentioned — a dad in the cabinet of history’s most transactional pay to play administration with trillions of dollars of tax breaks and tariff waivers on the line. As an actual investment: it’s nuts. But to a SPAC investor: the nuttier the better.
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This cost $10 in its recent IPO but unlike other IPOs, we get a free put and call. There’s a redemption right to get our capital returned if we don’t like the deal and no one else does either. That means that IPO investors are long volatility. The last thing we want is to put in $10 to get $10 of value. We’d far prefer a coinflip of double — or more — or nothing (since nothing is worth $10 anyway). The only cost is opportunity cost. This one has had plenty of volatility so far:
If you want meme stock upside and limited downside: participate in these via the IPO or around the IPO price. If you want bitcoin, just buy bitcoin. New customers can get free bitcoin bonuses for buying bitcoin at Gemini, Coinbase, and Crypto.com; any of these options get bitcoin at a far lower price than via MicroStrategy (MSTR) or CEP (subsequently XXI). MSTR and CEP/XXI are simply substitutes for something that needs no substitute: leveraged bitcoin.
Caveat
CEP’s price is nuts but can get even nuttier.
Conclusion
Want SPAC euphoria? Get in at or near the IPO. Never pay more than $10 for SPAC shares. Almost always redeem then if they’re trading beneath the redemption price or sell them if they’re trading above it.
TL; DR
Want bitcoin? Just buy bitcoin (here, here, or here). It could head back above $100k again soon.
