In Brief
Group comprising Tether, Bitfinex, Cantor Fitzgerald, and SoftBank to Establish Bitcoin Firm with a $3.9 Billion Treasury Reserve
The crypto-traditional finance heavyweights, Tether, Bitfinex, Cantor Fitzgerald, and SoftBank, announced on Wednesday the formation of Twenty One, a public Bitcoin-focused company with an initial treasury of over 42,000 BTC ($3.9 billion). Tether and Bitfinex will have a majority share, with SoftBank holding a minor stake. This public company will be a result of a SPAC merger with Cantor Equity Partners, listed on Nasdaq under ticker XXI. Strike's founder, Jack Mallers, will lead the company as CEO, offering Bitcoin lending services, other financial products, and Bitcoin-centric content.
Rock the Blockchain World
In a joint venture of crypto titans and old-school finance giants, Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group have announced the formation of a Bitcoin-centric powerhouse, dubbed Twenty One. Set to launch with an initial Bitcoin treasury of more than 42,000 BTC ($3.9 billion), Twenty One aims to shake up the market with a blend of crypto accumulation and ecosystem development.
Tether and Bitfinex will maintain the majority ownership, while SoftBank Group secures a respectable minority stake in this venture. The company will come to life through a SPAC merger with Cantor Equity Partners, which trades on the Nasdaq under the ticker CEP and is affiliated with the financial services firm, Cantor Fitzgerald.
In addition to accumulating copious amounts of Bitcoin, Twenty One aims to provide native Bitcoin lending services and a myriad of other financial products. The company will further produce Bitcoin-centric content to fuel its mission.
Twenty One did not respond to our queries from Decrypt.
Jack Mallers, the brains behind Bitcoin payments company Strike, was announced as the new firm's CEO.
As per the announcement, Cantor Equity Partners will raise $385 million through convertible senior notes and $200 million through private investment in public equity (PIPE) to buy Bitcoin and fund general corporate purposes. Investors will acquire returns by purchasing shares in the company, with Twenty One trading under the ticker "XXI."
Mallers shared his vision eloquently in a statement: "Our objective is crystal clear: to become the most successful firm in Bitcoin, the most significant financial opportunity of our time. We're not here to outperform the market; we're here to build a new one."
The move was first reported late Tuesday by the Financial Times.
Tether, the company behind USDT, the third-largest cryptocurrency by market cap, will provide the Bitcoin to Twenty One, with debt financing. El Salvador-based Tether's USDT product is the leading stablecoin in the market – a virtual token that the firm claims is backed by dollars, treasuries, and other assets.
Cantor Fitzgerald, an investment firm run by Trump's Commerce Secretary, Howard Lutnick's ally, will oversee Tether's US Treasuries reserves. The firm will also help Twenty One acquire Bitcoin through debt financing. Brandon Lutnick, Howard's son, presides as Chairman and CEO of Cantor Equity Partners and Cantor Fitzgerald.
The Crypto Market's New Kid on the Block
As stablecoins gain traction, government authorities are currently debating two pieces of legislation related to stablecoins. The Trump administration has taken a cordial stance towards regulating the digital asset industry thus far, with the SEC dropping many of its lawsuits against and investigations into cryptocurrency companies.
Twenty One's business model resembles that of Strategy (formerly MicroStrategy), a Nasdaq-listed software company which began purchasing Bitcoin in 2020. The firm currently holds 538,000 BTC, worth around $50 billion, positioning itself as the largest corporate holder of the asset. By acquiring company shares, investors can garner Bitcoin exposure – a model that Twenty One seems intent on mirroring.
Edited by Robert Turner
Editor's note: This story was updated after publication with additional details.
Daily Debrief Newsletter
- In a joint venture, Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group have announced the formation of Twenty One, a Bitcoin-centric powerhouse.
- Twenty One aims to shake up the market with a blend of crypto accumulation and ecosystem development.
- Tether and Bitfinex will maintain the majority ownership, while SoftBank Group secures a minority stake in this venture.
- Cantor Equity Partners will raise funds for Twenty One through convertible senior notes and private investment in public equity (PIPE).
- Jack Mallers, founder of Bitcoin payments company Strike, was announced as the new firm's CEO.
- Tether, the company behind USDT, the third-largest cryptocurrency by market cap, will provide Bitcoin to Twenty One with debt financing.
- Cantor Fitzgerald, an investment firm, will oversee Tether's US Treasuries reserves and help Twenty One acquire Bitcoin through debt financing.
- Twenty One's business model resembles that of Strategy, a Nasdaq-listed software company that began purchasing Bitcoin in 2020, and aims to mirror this model by allowing investors to gain Bitcoin exposure through the acquisition of company shares.
