From Yahoo Finance: 2025-05-03 10:45:00

A company aims to help investors earn a yield on their Bitcoin through a merger with a SPAC, surpassing Strategy’s valuation. The stock has gained popularity due to Bitcoin’s rise. Another company, Twenty One, backed by Tether and SoftBank, plans to focus solely on accumulating Bitcoin, attracting investor interest.

Twenty One plans to merge with Cantor Equity Partners and establish a Bitcoin treasury of 42,000 Bitcoins. Investors value its planned Bitcoin holdings at nearly four times the current value. The company aims to increase Bitcoin per share, offering a yield on Bitcoin holdings, a unique opportunity in the market.

Strategy, formerly MicroStrategy, trades at twice the value of its Bitcoin treasury due to its strategy of selling shares to buy more Bitcoin. However, this leveraged exposure poses risks if Bitcoin’s value drops. Investors are placing bets on increasing Bitcoin per share, anticipating significant returns but also high volatility.

Consider the risks before investing in Strategy or Twenty One, as the cryptocurrency market is highly volatile. There are better investment options available. The Motley Fool Stock Advisor team identified 10 top stocks that could provide substantial returns. Don’t miss out on market-beating opportunities by investing wisely.



Read more at Yahoo Finance: Investors Are Piling Into This Hot New SPAC Stock Taking on MicroStrategy. Should You Follow Their Lead?