Twenty One Capital has launched with USD 3.6 billion in Bitcoin, supported by Tether, SoftBank, and Bitfinex. The firm, created via a SPAC merger, plans to mirror MicroStrategy’s Bitcoin-heavy strategy, aiming to capitalise on increased institutional interest. It will leverage both existing and additional capital for Bitcoin acquisition, responding to a favourable regulatory climate for cryptocurrencies.
Twenty One Capital has officially launched with a robust backing of USD 3.6 billion in Bitcoin. The firm has garnered support from prominent investors, including Tether, SoftBank, and Bitfinex. This investment vehicle has kick-started its journey with an impressive 42,000 Bitcoin, facilitated through a reverse merger with Cantor Equity Partners, a special purpose acquisition company (SPAC) that raised USD 100 million in 2023.
The architects of Twenty One Capital cite a growing demand for substantial Bitcoin investments as a primary motivator for this venture. They aim to employ a strategy similar to that of MicroStrategy, a tech company that saw its market valuation soar after pivoting toward Bitcoin holdings. This similarity highlights their focus on securing large-scale exposure to this digital asset.
With an estimated valuation of USD 3.6 billion—factoring in debt—Twenty One Capital is basing its financials on a Bitcoin price of about USD 85,000. The plan is to leverage both their initial digital assets and fresh capital to accumulate even more Bitcoin. Initial contributions are expected from SoftBank, Bitfinex, and Tether, with Tether committing at least USD 1.5 billion in Bitcoin alone.
Besides the Bitcoin contributions, Cantor Equity Partners intends to raise additional capital through a USD 385 million convertible bond issuance, alongside a separate equity placement of USD 200 million. The leadership team includes a crypto executive from Strike, a well-known Bitcoin purchasing platform, signalling a commitment to utilising industry expertise.
This launch is part of a broader movement of SPAC activities associated with Cantor Fitzgerald, which has been increasingly entering crypto finance. Officials from the consortium noted their goal to provide Bitcoin exposure as institutional interest rises. The timing is considerable, given Bitcoin’s current price fluctuations, which recently saw a spike above USD 106,000 post the 2024 US presidential election, only to now hover around USD 93,000 as per the Financial Times.
Moreover, supportive regulatory signals from the current US administration regarding cryptocurrencies could potentially foster greater institutional engagement in this sector, which adds an interesting layer to Twenty One Capital’s entry into the market.
