Great write-up. I struggle to see what there is not to like here. Clean SPAC structure with no warrants/dilution, already profitable with real revenue growth, massive regulatory moat in US+EU, blue-chip partners like BlackRock rolling over, and positioned as the pure-play leader in a $19T+ TAM that's just starting to explode. Super excited to watch this story unfold as the merger closes and tokenization goes mainstream! I'm in for the ride!
Thanks Keir - really appreciate the kind words and the sharp summary!
You nailed the key points that make this stand out: the truly clean structure, profitability with real traction, massive moat, 100% rollover from sophisticated holders like BlackRock/ARK, and being the first public pure-play in what could be one of the biggest secular trends of the decade.
The $19T+ TAM is staggering, and with the regulatory tailwinds + Cantor/Lutnick/Atkins alignment, the setup just feels asymmetric.
I'm right there with you — in for the ride and excited to see how it plays out post-close. Keep the thoughts coming as things progress!
Isn't it a bit odd to use the SPAC route instead of an IPO when spacs have such a bad reputation? It's like only junk gets listed via SPAC is the general view.
Great and very fair question, Mike — I'm actually writing a full post on this because it's a common (and valid) concern after the 2021 SPAC boom/bust. That era loaded up on speculative, pre-revenue companies with heavy dilution via warrants and rescue PIPEs.
But the Securitize / Cantor Equity Partners II ($CEPT) merger is the structural opposite: the company is already profitable with 10x revenue growth over the last 6 quarters. It features the largest fully committed 'pure' common stock PIPE we've seen in years ($225M at a clean $10/share, with zero warrants or rights in the SPAC structure), 100% rollover from blue-chip holders (BlackRock, Morgan Stanley, ARK, etc.), and zero cash-outs for insiders.
I'm putting the finishing touches on a breakdown article, which will be posted soon, so stay tuned - it covers why this feels more like a high-quality negotiated listing than a classic 'junk' SPAC.
The regulatory moat angle here is wild, especially with that dual US/EU licensing setup that noone else has yet. Most people fixate on BlackRock's BUIDL fund but the real alpha seems to be in that transfer agent infrastucture where every new dollar of AUM basically prints margin. Been watching how legacy players like DTCC are reacting and they're defintely not moving fast enough to compete at this tier.
Thanks for the reply! Spot on. Most people get blinded by the BlackRock headline and huge AUM number (which is impressive and material), but from a long term upside perspective people miss the more important highly scalable infrastructure it has taken Securitize years to build.
The Transfer Agent infrastructure is the real "Value Capture" layer imo. While the DTCC is running its SEC No-Action pilot (which only tokenizes entitlements or 'claims' to stocks), Securitize is actually tokenizing the issuer's cap table itself (native).
By being the only player with both a US Transfer Agent license and an EU DLT Pilot license, $CEPT/$SECZ aren't just a "bridge" they are becoming the legal "Source of Truth" for global assets, per my take on the CEO's comments.
Legacy players like DTCC are basically building faster horses to run on old tracks. Securitize is building the engine for an entirely different race. The transfer agent fees + the ATS (Alternative Trading System) spread is exactly where the high margin money is made, as BUIDL AUM scales. Glad you're seeing the infrastructure play here as that was my intent!
Citron Research Out LONG $CEPT - Research Report Here - https://citronresearch.com/
Great write-up. I struggle to see what there is not to like here. Clean SPAC structure with no warrants/dilution, already profitable with real revenue growth, massive regulatory moat in US+EU, blue-chip partners like BlackRock rolling over, and positioned as the pure-play leader in a $19T+ TAM that's just starting to explode. Super excited to watch this story unfold as the merger closes and tokenization goes mainstream! I'm in for the ride!
Thanks Keir - really appreciate the kind words and the sharp summary!
You nailed the key points that make this stand out: the truly clean structure, profitability with real traction, massive moat, 100% rollover from sophisticated holders like BlackRock/ARK, and being the first public pure-play in what could be one of the biggest secular trends of the decade.
The $19T+ TAM is staggering, and with the regulatory tailwinds + Cantor/Lutnick/Atkins alignment, the setup just feels asymmetric.
I'm right there with you — in for the ride and excited to see how it plays out post-close. Keep the thoughts coming as things progress!
Isn't it a bit odd to use the SPAC route instead of an IPO when spacs have such a bad reputation? It's like only junk gets listed via SPAC is the general view.
New article out - hope you guys enjoy - The ‘Non-SPAC’ SPAC: Why the Securitize, Inc. ($CEPT -> $SECZ) Merger is Built Different - https://toptickresearch.substack.com/p/the-non-spac-spac-why-the-securitize
Great and very fair question, Mike — I'm actually writing a full post on this because it's a common (and valid) concern after the 2021 SPAC boom/bust. That era loaded up on speculative, pre-revenue companies with heavy dilution via warrants and rescue PIPEs.
But the Securitize / Cantor Equity Partners II ($CEPT) merger is the structural opposite: the company is already profitable with 10x revenue growth over the last 6 quarters. It features the largest fully committed 'pure' common stock PIPE we've seen in years ($225M at a clean $10/share, with zero warrants or rights in the SPAC structure), 100% rollover from blue-chip holders (BlackRock, Morgan Stanley, ARK, etc.), and zero cash-outs for insiders.
I'm putting the finishing touches on a breakdown article, which will be posted soon, so stay tuned - it covers why this feels more like a high-quality negotiated listing than a classic 'junk' SPAC.
Would love your take once it's live...
The regulatory moat angle here is wild, especially with that dual US/EU licensing setup that noone else has yet. Most people fixate on BlackRock's BUIDL fund but the real alpha seems to be in that transfer agent infrastucture where every new dollar of AUM basically prints margin. Been watching how legacy players like DTCC are reacting and they're defintely not moving fast enough to compete at this tier.
Thanks for the reply! Spot on. Most people get blinded by the BlackRock headline and huge AUM number (which is impressive and material), but from a long term upside perspective people miss the more important highly scalable infrastructure it has taken Securitize years to build.
The Transfer Agent infrastructure is the real "Value Capture" layer imo. While the DTCC is running its SEC No-Action pilot (which only tokenizes entitlements or 'claims' to stocks), Securitize is actually tokenizing the issuer's cap table itself (native).
By being the only player with both a US Transfer Agent license and an EU DLT Pilot license, $CEPT/$SECZ aren't just a "bridge" they are becoming the legal "Source of Truth" for global assets, per my take on the CEO's comments.
Legacy players like DTCC are basically building faster horses to run on old tracks. Securitize is building the engine for an entirely different race. The transfer agent fees + the ATS (Alternative Trading System) spread is exactly where the high margin money is made, as BUIDL AUM scales. Glad you're seeing the infrastructure play here as that was my intent!