CEP 21 SPAC Info & NAV Premium (Patreon)

Note table above is not mine, it is from X... but it is good for illustration

TLDR

Nav Prem at 1.00 could mean stock price of $12. So that is the floor unless BTC goes to $50K.

Rem this

• SPAC ($CEP): A "blank check" company with no business of its own. It raises cash (here, $100M) to buy a real company (like $XXI). Think of it as a pool of money waiting to be spent on a business you can invest in.

• Redemption: If you own $CEP shares, you can say "no thanks" to the merger and get their min per share back in cash. It’s like a refund option that limits your losses.

• PIPE: Big investors (like institutions) who privately buy shares in the deal at a set price. They’re like VIPs getting a special deal.

• New Ticker ($XXI): The final company after $CEP and $XXI merge. This is what you own shares in if you stay in the deal. We are still very early day 2.

• BTC: Bitcoin. This deal involves 42,000 Bitcoins, which is a big part of why people are excited. However I see the CEP stock getting diluted 10 to 1 at least in order to pull this 42K over... rem Market Cap now is only $400M

• mNAV (Multiple of Net Asset Value): A way to measure if $CEP’s stock price is cheap or expensive compared to the Bitcoin and cash it will own. Formula:

  • mNAV = (Market Cap of $CEP) / (Value of Bitcoin and assets it will hold).

  • Example: If $CEP’s stock is $20 and the Bitcoin it owns is worth $10 per share, mNAV = 2 (paying 2x the asset value).