Tether-backed Twenty One Capital set to slide in trading debut

Dec 9 (Reuters) - Shares of crypto treasury firm Twenty One Capital XXI.N plunged ahead of their first day of trading on Tuesday following the completion of the company's planned merger with a blank-check firm as crypto-related stocks face mounting pressure.

The new company, which will trade under the ticker "XXI" on the NYSE, was last down 26.4% at $10.50 in premarket trading.

Twenty One is majority-owned by stablecoin giant Tether and crypto exchange Bitfinex, with minority stakes held by Japanese technology investor SoftBank Group 9984.T. It was formed by merging into blank-check vehicle Cantor Equity Partners CEP.O in a deal first announced in April.

The new company holds over 43,500 bitcoins BTC=, making it the world's third-largest corporate holder of the cryptocurrency, according to crypto publication The Block.

Its holdings are worth more than $3.97 billion based on bitcoin's last closing price of $91,350.84, according to Reuters' calculations.

Cantor Equity is a special purpose acquisition company (SPAC) backed by Cantor Fitzgerald, an investment banking and brokerage firm chaired by Brandon Lutnick, the son of U.S. Secretary of Commerce Howard Lutnick.

SPACs merge with privately held startups, offering them an alternative route to go public. Cantor Equity shares had surged as much as 380% for the year in April before paring much of those gains, and are now up just 37% year-to-date.

Twenty One joins public markets as cryptocurrencies are facing selling pressure, with bitcoin itself having fallen more than 28% from its record high of $126,223.18 on October 6.

"Digital asset treasury" or DAT companies have lost ground amid the broader crypto drawdown, stoking concerns over stress in the niche but fast-growing sector.

Buoyed by U.S. President Donald Trump's crypto-friendly stance and inspired by Michael Saylor's Strategy MSTR.O, a number of publicly traded companies have started investing in cryptocurrencies in hopes of higher returns.