Cantor Fitzgerald's $3.6B Bitcoin Venture with SoftBank and Tether
Cantor Fitzgerald, SoftBank, Tether, and Bitfinex Launch $3.6B Bitcoin Venture to Rival MicroStrategy
Cantor Fitzgerald is spearheading a $3.6 billion Bitcoin investment venture, Twenty One Capital, in collaboration with SoftBank, Tether, and Bitfinex. This initiative aims to emulate the Bitcoin acquisition strategy of MicroStrategy (now rebranded as Strategy), which has significantly increased its market value through substantial Bitcoin holdings.
Formation and Structure of Twenty One Capital
The venture is being established through a reverse merger between Cantor Equity Partners, a SPAC that raised $200 million in January, and the newly formed entity, Twenty One Capital. The capital structure includes contributions of $1.5 billion in Bitcoin from Tether, $900 million from SoftBank, and $600 million from Bitfinex, totaling over 42,000 Bitcoins. This positions Twenty One Capital as the third-largest corporate holder of Bitcoin globally.
To further bolster its Bitcoin reserves, the company plans to raise an additional $585 million through a $385 million convertible bond offering and a $200 million private equity placement.
Leadership and Strategic Vision
Jack Mallers, founder and CEO of Strike, will lead Twenty One Capital as CEO. The company's mission is to maximize Bitcoin ownership per share and develop Bitcoin-native financial products, including lending models and capital market instruments.
The venture aligns with the pro-cryptocurrency stance of the current U.S. administration under President Donald Trump. Howard Lutnick, former CEO of Cantor Fitzgerald and now U.S. Commerce Secretary, has been a vocal advocate for cryptocurrency adoption.
Market Implications
The formation of Twenty One Capital signifies a growing trend of traditional financial institutions embracing digital assets. By providing a publicly traded vehicle for Bitcoin exposure, the venture offers investors an alternative to directly holding cryptocurrencies.