Twenty One Capital: four days to comply with NYSE rules \ ~hyperlinks

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Twenty One Capital: four days to comply with NYSE rules atlas21.com/twenty-one-capital-four-days-to-comply-with-nyse-rules/

1947 sats \ 10 comments \ @0xbitcoiner 2 Jun Stacker_Stocks

The bitcoin treasury company controlled by Tether risks a “Below Compliance” flag from the New York Stock Exchange by Friday, June 6.

Twenty One Capital, the bitcoin treasury company controlled by Tether and with Jack Mallers as its public face, has until Friday, June 6 to remedy a violation of NYSE rules regarding the composition of its independent audit committee. If it fails to do so, the XXI stock will receive a BC – Below Compliance – indicator visible on all market profiles, data, and news pages starting June 9, with further disciplinary measures to follow.

The root of the problem traces back to the May 19 transaction: on that date, Tether acquired SoftBank’s entire position in Twenty One, consisting of 89,106,748 Class A shares, simultaneously canceling the corresponding Class B shares. The transaction also terminated a governance agreement that had granted SoftBank veto rights over the composition of the board of directors and other significant corporate decisions. The two directors appointed by SoftBank, Jared Roscoe and Vikas Parekh, resigned on the same day.

...read more at atlas21.com

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135 sats \ 5 replies \ @BlokchainB 2 Jun

The critical point is that Roscoe was a member of the audit committee. His departure reduced the independent members of that committee to just one, whereas the NYSE requires at least two during the post-listing transition period. On May 29, the New York Stock Exchange formally sent Twenty One a non-compliance notification. The company stated it expects to appoint an additional independent audit committee member “promptly”, without specifying, however, who holds the authority to select a sufficiently independent director.

Meanwhile, the company’s financial backdrop is far from favorable. Twenty One holds 43,514 BTC, an asset worth approximately 3.1 billion dollars, yet the entire company’s market capitalization stands below 2.5 billion dollars. The stock has lost more than 83% of its valueover the past twelve months, against a backdrop marked by uncertainty over internal leadership, the arrival of Raphael Zagury — a figure close to Tether — who has taken on many of the responsibilities previously held by Mallers, and the failure to launch the promised commercial operations.

@Scoresby did this Raphael guy show up in your Tether series? Is he shady?

Tether is just taking over!!

469 sats \ 0 replies \ @Scoresby 2 Jun

I don't know much about him. He certainly is connected with Tether. Zagury was at the center of the Swan/Tether mining endeavor dispute.

Here's an interview with Zagury if you want to hear him talk about Elektron and Tether:

https://www.coindesk.com/podcasts/coindesk-podcast-network/the-blockspace-pod-inside-tether-s-50-eh-s-mining-empire-w-elektron-s-rapha-zagury

(as a side note, I've been trying to get him to do an AMA on SN for some time. No success yet.)

207 sats \ 2 replies \ @optimism 2 Jun

#1488335 - From https://elektronenergy.io/about-us:

Elektron Energy is supported by long-term, Bitcoin-aligned capital through a strategic partnership with Tether.

#1433299 mentions a "Barry" - DCG Barry?

91 sats \ 1 reply \ @Scoresby 2 Jun

Yes. Relevant bits:

Colyer noted that Foundry's parent company, Digital Currency Group, gave him similar long-term latitude under founder Barry Silbert's leadership.

"Barry was very much like, I don't care what happens month to month, quarter to quarter, think in terms of decades," Colyer said. "How's this gonna play out over the next 10 years?"

I can quote post the whole article if that's helpful.

124 sats \ 0 replies \ @optimism 2 Jun

No need, thanks for confirmation.

I find it interesting that we have this growing group of bitcoin-regular executives that pop up in different places nowadays.

193 sats \ 0 replies \ @k00b 2 Jun

He did an episode of What Bitcoin Did when he was still CIO of Swan.

37 sats \ 0 replies \ @denlillaapan 2 Jun

oh noooeeh, how are they gonna make it?!

1 sat \ 0 replies \ @falsefaucet 2 Jun

bitcoin treasury companies are a damn affinity scam.

i love bitcoin
buy my fucking stock.

Every
single
time

0 sats \ 1 reply \ @7979924cf2 2 Jun freebie -10 sats

Interesting timing on this. What specific NYSE rule composition violation are they facing? If they fail to comply by June 6, a "Below Compliance" flag usually triggers a cure period, but it definitely won’t look good for public perception.