- Tether, SoftBank Group, and Cantor Fitzgerald are launching Twenty One Capital, a $3.6 billion Bitcoin investment vehicle targeting Wall Street institutions.
- The new entity will hold approximately 42,000 bitcoin, making it the third-largest corporate bitcoin holder behind Strategy and MARA.
- Bitcoin payments entrepreneur Jack Mallers will serve as CEO, with the company planning to trade under the ticker symbol “XXI” after completing its SPAC merger.
Tether, Cantor Fitzgerald, and SoftBank Group have joined forces to establish Twenty One Capital, a new bitcoin accumulation vehicle with a $3.6 billion enterprise value targeted at institutional investors. The company will go public through a merger with Cantor Equity Partners (CEP), a special purpose acquisition company. Jack Mallers, founder of bitcoin payments company Strike, has been appointed CEO of the new venture, as reported by the Financial Times.
Major Institutional Bitcoin Holdings
Twenty One Capital will begin operations with approximately 42,000 bitcoin valued at $3.6 billion, based on the 10-day average price of $84,864. These assets come from cash commitments and bitcoin contributions from Tether ($1.5 billion), Bitfinex ($600 million), and SoftBank ($900 million) in exchange for equity stakes. This substantial bitcoin holding positions Twenty One Capital as the third-largest corporate bitcoin holder, behind only Strategy (formerly MicroStrategy) with 538,200 BTC ($50.5 billion) and mining company MARA with 47,531 BTC ($4.5 billion).
To support further bitcoin acquisitions, the company has secured $585 million in financing, including $385 million in convertible senior secured notes with a $13 conversion price and a $200 million private investment in public equity (PIPE) at $10 per share. Tether, which will hold a majority stake in the venture, has committed to purchasing additional bitcoin equal to the net proceeds from these financing activities.
Business Model and Future Plans
Twenty One Capital’s business approach mirrors that of Strategy, the software company transformed into a bitcoin investment vehicle by Michael Saylor. The new entity introduces two custom metrics to attract investors: Bitcoin Per Share (BPS) and Bitcoin Return Rate (BRR), which track coins per fully diluted share and BPS growth respectively.
Beyond bitcoin accumulation, the company has outlined ambitious plans to “develop a corporate architecture capable of supporting financial products built with and on Bitcoin,” including lending models, capital market instruments, and innovations aimed at replacing traditional financial tools.
Cantor Fitzgerald, currently led by 27-year-old Brandon Lutnick following his father Howard’s appointment as U.S. Secretary of Commerce, will continue trading under the symbol “CEP” until the transaction closes. Twenty One Capital plans to trade under the ticker symbol “XXI” thereafter.
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