Stablecoin issuer Tether is the majority owner of a new cryptocurrency venture, Twenty One Capital, which will launch with a substantial $3.6 billion worth of Bitcoin in its treasury. The announcement on Wednesday also revealed backing from global financial powerhouses SoftBank Group and Cantor Fitzgerald.
Twenty One Capital plans to go public through a special purpose acquisition company (SPAC) merger with Cantor Equity Partners. The company intends to increase its already significant Bitcoin holdings, offering institutional investors a more conventional route to gain exposure to the digital asset, similar to Michael Saylor’s publicly traded company, Strategy.
According to the release, Twenty One will hold over 42,000 Bitcoins at its launch. This positions it as the third-largest public company Bitcoin treasury holder, trailing only Strategy and Mara Holdings. However, data from Bitcoin Treasuries indicates that numerous private firms and governments possess even larger Bitcoin reserves.
Tether and its sister crypto exchange Bitfinex will be the majority owners of Twenty One, with SoftBank as a minority stakeholder. Tether has a long-standing relationship with Cantor, founded by former U.S. Treasury Secretary Howard Lutnick and now operated by his son Brandon. Cantor, which holds a 5% stake in Tether, reportedly holds nearly all of Tether’s U.S. Treasury bill portfolio, according to previous reports from Reuters.
Tether is set to contribute $1.5 billion worth of Bitcoin to Twenty One, while SoftBank will contribute $900 million in Bitcoin, and Bitfinex plans to supply $600 million worth of the cryptocurrency, as reported by The Block citing the Financial Times. These Bitcoin investments will eventually be converted into equity at a $10 per share valuation. Additionally, Twenty One aims to raise $585 million through a capital raise, including a $350 million convertible bond sale and a $200 million private equity placement.
