- Tether-controlled Twenty One Capital must fill an independent audit committee seat by Friday to avoid a non-compliance flag from the New York Stock Exchange.
- The deficiency stems from SoftBank’s exit in late May, which left the firm’s audit committee short of the required independent members.
- The crypto treasury company’s stock has plummeted 83% in value over the past year despite holding Bitcoin worth over $3.1 billion.
Twenty One Capital faces a critical Friday deadline to comply with a New York Stock Exchange (NYSE) governance rule, or it will be flagged as Below Compliance. The disclosed deficiency follows a non-compliance notice received late last week.
However, the trigger was a May 19 transaction where Tether bought out SoftBank’s entire share position. Consequently, two SoftBank directors resigned from the board immediately after the deal’s closure.
Their departure left the audit committee with only one independent member. This situation violates the NYSE’s requirement for a minimum of two independent members during the company’s post-listing transition period.
Twenty One says it expects to appoint a new independent director promptly to remedy the situation. Failure to do so will result in a BC indicator appearing on its NYSE profile starting June 9.
Company stock has simultaneously lost 83% of its value over the past twelve months. Its market cap now sits below $2.5 billion despite Twenty One last disclosing bitcoin holdings worth approximately $3.1 billion.
Meanwhile, Tether CEO Paolo Ardoino reiterated his firm’s conviction just days before the NYSE issued its formal notice. The company now has little time to find a suitable independent director and restore governance compliance.
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