Cantor Fitzgerald, Tether, SoftBank Launch $3.6 Billion Bitcoin Investment Firm

Twenty One Capital, a new company formed by Cantor Fitzgerald, Tether Holdings SA, and SoftBank Group, is about to become one of the largest public holders of bitcoin.

A Reuters report said the entity will launch with over 42,000 bitcoin (valued at about $3.6 billion), positioning it as the third-largest corporate bitcoin holder globally.

Stablecoin issuer Tether will contribute $1.6 billion in bitcoin, with its affiliated exchange Bitfinex kicking in $600 million and Japanese technology investor SoftBank adding $900 million, the report said.

A statement from the company Wednesday (April 23) said Twenty One Capital will be majority-owned by Tether and Bitfinex, with SoftBank holding a minority stake.

Strike CEO Jack Mallers will lead the company as co-founder and CEO, according to reports. “We’re not here to beat the market, we’re here to build a new one. A public stock, built by bitcoiners, for bitcoiners,” Mallers said in a statement.

The investment vehicle was reportedly inspired by the success of bitcoin acquirer Strategy (formerly known as MicroStrategy). Bloomberg reports that Strategy has amassed about $45 billion worth of bitcoin.

According to Reuters, bitcoin is trading at $94,166, gaining more than 40% in the past six months.

Financial and real estate services holding company Cantor Fitzgerald is headed by Brandon Lutnick, the son of U.S. Commerce Secretary Howard Lutnick. PYMNTS reported on the deepening ties between Cantor Fitzgerald and Tether in November.

A Reuters report said Cantor Fitzgerald holds 99% of Tether’s U.S. Treasury reserves.

The statement from Twenty One Capital said the partner companies plan to raise $585 million in additional capital through a combination of convertible bonds and equity financing.

CoinDesk reported that Twenty One Capital will merge with the special purpose acquisition company (SPAC) Cantor Equity Partners, which will keep its “CEP” NASDAQ ticker until the transaction is finalized. It is unclear when the deal is expected to close.

Twenty One Capital will trade on the Nasdaq under the symbol “XXI” after the deal closes, the report said.

Twenty One Capital also plans to report its performance in bitcoin per share (BPS) and bitcoin return rate (BRR), the company statement said.