The vehicle, which begins operations with 42,000 bitcoin, is being developed through a reverse merger with Cantor Equity Partners, a special purpose acquisition company (Spac) that raised USD 100 million in 2023.
The initiative is structured as a response to what its backers describe as increasing demand for large-scale bitcoin exposure. Representatives from the consortium stated the vehicle aims to mirror the strategy adopted by MicroStrategy, a technology firm that shifted toward bitcoin holdings and saw a significant rise in market capitalisation as a result.
Aiming to replicate Bitcoin-heavy strategy
Twenty One Capital will be valued at approximately USD 3.6 billion including debt, based on a bitcoin price of USD 85,000. The vehicle plans to use both its existing digital assets and additional capital to acquire more bitcoin. SoftBank, Bitfinex, and Tether, the latter two of which are part of the same corporate group, will provide the initial cryptocurrency contributions. Tether alone is expected to transfer bitcoin worth at least USD 1.5bn.
In addition to digital asset contributions, Cantor Equity Partners will raise further funds via a USD 385 million convertible bond issuance and a separate USD 200 million private equity placement.
The new entity will be led by a crypto executive associated with the bitcoin purchasing platform Strike. Officials from Cantor Fitzgerald are overseeing the transaction, which marks a continuation of the brokerage’s increasing involvement in crypto-related finance.
Twenty One Capital is positioned as part of a general wave of Spac activity linked to Cantor Fitzgerald, which has launched multiple such entities pursuing acquisition targets. Representatives from the consortium expressed that the vehicle is intended to offer exposure to bitcoin at a time when institutional interest appears to be on the rise.
The launch coincides with a fluctuating but elevated bitcoin price environment. Following a surge to over USD 106,000 in the wake of the 2024 US presidential election, bitcoin has since settled near USD 93,000 per coin according to the Financial Times.
A more favourable regulatory approach toward cryptocurrency has been signalled under the current US administration, a stance that may have implications for further institutional participation in the sector.
