Major Shake-Up in Crypto Markets: Cantor Fitzgerald, SoftBank, Tether, and Bitfinex Launch Twenty One Capital
A groundbreaking development is unfolding in the crypto space. Leading financial giants Cantor Fitzgerald, SoftBank, Tether, and Bitfinex are joining forces to launch a new Bitcoin investment company called Twenty One Capital. Backed by a massive $3.6 billion in capital, this initiative aims to reshape the institutional Bitcoin landscape.
Twenty One Capital will merge with Cantor Equity Partners (CEP) and will be publicly listed on the NASDAQ under the ticker symbol "XXI".
Investors and Capital Structure
The initial capital backing this powerhouse venture is distributed as follows:
- Tether: $1.5 billion in Bitcoin reserves
- SoftBank: $900 million investment
- Bitfinex: $600 million in financial backing
- Additional Resources: $385 million from convertible bonds and a $200 million private equity raise
With this structure, Twenty One Capital will debut with reserves of 42,000 Bitcoins, making it the world’s third-largest institutional Bitcoin holder right out of the gate.
Familiar Face at the Helm: Jack Mallers
Jack Mallers, the renowned founder of Strike, will serve as CEO of Twenty One Capital. Under Mallers' leadership, the company will be evaluated not by traditional financial metrics, but by Bitcoin-centric indicators such as Bitcoin Per Share (BPS) and Bitcoin Return Rate (BRR).
A New Strategy: Bringing Bitcoin to the Institutional World
Twenty One Capital's core mission is to accelerate Bitcoin’s adoption in the institutional investment space.The firm aims to offer investors a regulated environment for direct Bitcoin exposure and plans to develop a range of Bitcoin-based financial products.Their strategic model is inspired by MicroStrategy’s highly successful Bitcoin-focused approach.
Market Reaction: A Massive Rally
Following the announcement, Cantor Equity Partners' stock price skyrocketed by 197%, reflecting the growing appetite for institutional Bitcoin investments and the increasing convergence of traditional finance and crypto markets.The resurgence of crypto-friendly policies during Donald Trump’s new term is also providing a supportive backdrop for such initiatives.
Cantor Fitzgerald’s Established Position in Crypto
Cantor Fitzgerald is no stranger to the crypto sector. Since 2021, the firm has been managing $134 billion in Tether’s reserves and holds a 5% stake in Tether.This deep-rooted experience gives Twenty One Capital a significant edge as it embarks on this bold new journey.
A New Chapter for Bitcoin
The collaboration between industry heavyweights Cantor Fitzgerald, SoftBank, Tether, and Bitfinex goes beyond just another financial investment—it represents a pivotal moment in Bitcoin’s journey toward permanent integration into institutional portfolios.
All eyes are now on Twenty One Capital's performance on NASDAQ.This new venture could mark a major turning point for Bitcoin and the broader crypto ecosystem.
