MicroStrategy 2.0: Tether, Bitfinex, SoftBank, and Cantor Found “Twenty One” with $3.9 Billion in BTC

A new Bitcoin heavyweight is entering the scene: Crypto companies Tether and Bitfinex are teaming up with financial giants Cantor Fitzgerald and SoftBank to establish a new publicly traded company: Twenty One. What’s special about it? The company is expected to launch with Bitcoin assets of more than 42,000 BTC (currently worth around $3.9 billion).

The company will be formed through a SPAC merger with Cantor Equity Partners (Nasdaq: CEP), a spin-off of Cantor Fitzgerald. Tether and Bitfinex will become the majority owners of Twenty One, while SoftBank will hold a minority stake.

Objectives of the Twenty One project

Twenty One aims to be more than just a holding company with a Bitcoin vault. The company plans to offer Bitcoin-native lending, additional financial products, and its own Bitcoin media content. Jack Mallers, known as the founder of the Bitcoin payment service Strike, has been appointed CEO.

To finance the launch, CEP plans to raise $385 million through convertible notes and $200 million through private equity with Twenty One. The proceeds will be used for Bitcoin purchases and general corporate purposes. Twenty One’s shares will trade under the ticker XXI.

“We don’t want to beat the market, we want to build a new one,” says Mallers about Twenty One’s vision.

Parallels to MicroStrategy

The business model is strongly reminiscent of Strategy (formerly MicroStrategy), which was the first publicly traded company to purchase Bitcoin on a large scale and is now the largest company holder with over 538,000 BTC. Here, too, investors gain indirect exposure to Bitcoin through shares.

Crypto regulation gains momentum

The founding takes place in a politically favorable environment: Under President Trump, the US government is currently pursuing a crypto-friendly stance. The SEC has already dropped several lawsuits against crypto companies, and new stablecoin legislation is in the pipeline. Tether, issuer of the stablecoin USDT, will supply Twenty One with Bitcoin – relying on debt financing.

Cantor Fitzgerald, closely associated with the Trump administration, already manages Tether’s US Treasury bonds and is also playing a key role in this project.

Conclusion

With Twenty One, a new Bitcoin giant is emerging on the Nasdaq – and with some illustrious names behind it. If the concept works, the company could establish itself as a direct competitor to MicroStrategy – and offer investors another way to invest in Bitcoin without having to hold the coins themselves.

__

(Featured image by Kanchanara via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us