Bernstein: Institutional Buying May Lead to “Supply Squeeze” in Bitcoin, Potential for New Highs This Year

Last Week’s Announcement

Last week, SoftBank, Tether, Bitfinex, and Cantor Fitzgerald announced the establishment of a Bitcoin financial company named “Twenty One Capital,” which is expected to hold over 42,000 Bitcoins at the time of its opening. In a report to clients on Monday, Bernstein analyst Gautam Chhugani noted that Twenty One will receive $900 million in funding from SoftBank, $1.5 billion from Tether, and $600 million from Bitfinex. The company plans to raise an additional $585 million through a merger with Cantor Equity Partners’ SPAC upon completion of the transaction—$385 million of which will come from convertible notes and $200 million from common equity financing.