According to previous reports from Zombit, Twenty One Capital is a company founded by Brandon Lutnick, son of U.S. Secretary of Commerce Howard Lutnick, in collaboration with Tether, SoftBank, and Bitfinex. It was established through a merger with a special purpose acquisition company (SPAC) named Cantor Equity Partners and is now publicly listed in the United States under the stock ticker CEP, which saw an increase of over 6% yesterday.
The company’s goal is to emulate the transformation model of the software company Strategy (formerly MicroStrategy) by absorbing a significant amount of Bitcoin assets from its partners and utilizing methods such as debt-to-equity swaps and equity financing.
According to a securities filing submitted on May 13, this acquisition was carried out through a PIPE (Private Investment in Public Equity) transaction facilitated by a convertible corporate bond fundraising agreement. During the transaction process, Tether purchased Bitcoin shortly after the establishment of Twenty One Capital and transferred it into a wallet controlled by Tether.
Upon completion of the business merger, Tether will resell this batch of Bitcoin to Twenty One Capital at an equivalent price of $458.7 million. This asset has been officially categorized as “Initial PIPE Bitcoin Allocation.” Reports indicate that Twenty One Capital had $3.6 billion in Bitcoin reserves on its balance sheet at the time of its launch, making it the third largest publicly traded company holding Bitcoin globally.
The company is led by Jack Mallers, founder of Strike, and adopts a Bitcoin reserve strategy similar to that of Strategy (MicroStrategy). The remaining equity distribution is as follows:
- Tether and its sister company Bitfinex (cryptocurrency exchange) are the major shareholders of the company.
- SoftBank holds a minority stake.
The establishment of Twenty One Capital demonstrates that an increasing number of institutions are actively incorporating Bitcoin into their core investment strategies, further solidifying Bitcoin’s position as a corporate-grade asset allocation tool.