Cantor Fitzgerald is launching a cryptocurrency venture with Tether and Japanese technology investor SoftBank Group, aiming to capitalize on growing interest in bitcoin under U.S. President Donald Trump’s administration.
The Deal
The venture, Twenty One Capital, will be formed through a SPAC deal with Cantor Equity Partners (CEP) merging into the newly formed company. The combined entity will be valued at $3.6 billion, with Twenty One launching with more than 42,000 bitcoins, making it the world’s third-largest bitcoin treasury.
Tether will contribute $1.6 billion worth of bitcoin, while Bitfinex, a crypto exchange linked to Tether, and SoftBank will invest $600 million and $900 million, respectively. The companies will raise an additional $585 million through convertible bonds and equity financing.
Strategic Move
The venture deepens ties between Cantor Fitzgerald, chaired by Brandon Lutnick, and Tether, the company behind the world’s largest stablecoin. Twenty One will be majority-owned by Tether and Bitfinex, with SoftBank holding a minority stake.
“We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners,” said Jack Mallers, Twenty One Co-Founder and CEO. The new business aims to replicate the success of Michael Saylor’s Strategy, whose market value surged after Trump’s presidential election victory.
Market Context
Bitcoin has gained over 40% in the past six months, although it fell this month amid a global trade war sparked by Trump. Analysts see bitcoin as a hedge against global economic risks, with Matt Mena of 21Shares noting its potential as a “digital, next-generation store of value.”
Twenty One will trade on the Nasdaq under the symbol “XXI” after the deal closes. The venture reflects growing ties between traditional finance and the crypto industry, with Cantor holding a significant portion of Tether’s dollar-denominated reserves.
