$3.6B Bitcoin Venture
In a landmark move that underscores the growing convergence of traditional finance and cryptocurrency, Cantor Fitzgerald has partnered with SoftBank, Tether, and Bitfinex to launch Twenty One Capital—a $3.6 billion Bitcoin acquisition venture. This initiative, spearheaded by Brandon Lutnick, the new chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, positions Twenty One Capital as the third-largest holder of Bitcoin globally, with an initial reserve of 42,000 BTC .
The Genesis of Twenty One Capital
Twenty One Capital emerges through a reverse merger with Cantor Equity Partners, a special purpose acquisition company (SPAC) that raised $100 million last year. This strategic formation allows the new entity to be publicly traded, providing investors with exposure to Bitcoin through traditional equity markets .
The venture draws inspiration from MicroStrategy's Bitcoin investment strategy, aiming to capitalize on increasing institutional adoption of cryptocurrency. With Bitcoin trading at approximately $85,000, the venture's initial holdings are valued at $3.6 billion.
Strategic Partnerships and Financial Structure
Tether will contribute at least $1.5 billion worth of Bitcoin, while SoftBank and Bitfinex will provide the remaining digital assets. Additionally, the venture plans to raise funds through a $385 million convertible bond and a $200 million private equity placement. Investors will receive shares in Twenty One Capital in exchange for their Bitcoin contributions, with shares priced at $13 for the private placement and $10 for the convertible bond .
Jack Mallers, known for his work with the Bitcoin buying platform Strike, will lead Twenty One Capital as CEO. The company's ticker symbol, XXI, reflects its Bitcoin-centric focus.
Regulatory Landscape and Market Implications
The launch of Twenty One Capital coincides with a resurgence in cryptocurrency under President Donald Trump's administration, which has promised a more accommodative stance toward crypto trading. Bitcoin's price peaked at about $106,000 following Trump's election win in November and is currently trading at nearly $93,000 .
Cantor Fitzgerald's involvement in this venture marks a significant shift in traditional finance's approach to cryptocurrency. The firm has previously acquired a 5% stake in Tether, valued at up to $600 million, and plans to launch a $2 billion Bitcoin-backed lending program .
Future Prospects
Twenty One Capital represents a bold step toward integrating cryptocurrency into mainstream financial markets. By leveraging strategic partnerships and a robust financial structure, the venture aims to provide investors with a new avenue to gain exposure to Bitcoin. As institutional adoption of cryptocurrency continues to grow, Twenty One Capital is poised to play a pivotal role in shaping the future of digital asset investment.