Twenty One Capital Raises $100 Million, Boosts Bitcoin Holdings by $458 Million

Twenty One Capital, a Bitcoin treasury firm led by Strike founder Jack Mallers, has successfully raised an additional $100 million through the sale of convertible notes. This brings the company's total financing to $685 million, as disclosed in an updated 8-K form on Thursday.

The firm, which is financially supported by Tether and SoftBank, had previously secured $585 million. This included the sale of $385 million worth of convertible notes and a $200 million private investment in public equity (PIPE) agreement.

With the new financing, Twenty One plans to purchase more Bitcoin, adding to its existing stockpile. Earlier this month, the company acquired $458 million worth of Bitcoin. Additionally, through a merger agreement, $3.6 billion worth of Bitcoin was contributed to its balance sheet. The firm is set to be formed through a SPAC merger with Nasdaq-listed Cantor Equity Partners and currently manages the third-largest Bitcoin treasury among publicly traded companies.

Twenty One employs a “bitcoin per share” metric to assess its corporate exposure to the cryptocurrency, similar to Strategy, which pioneered the leveraged Bitcoin equity trade. The company utilizes multiple financing schemes to fund its balance sheet, providing greater flexibility in growing its holdings. The new notes carry a 1% coupon and are due in 2030, according to its Securities and Exchange Commission filing.

At its launch, Tether contributed $1.5 billion worth of Bitcoin, SoftBank contributed $900 million, and Bitfinex contributed $600 million to fund Twenty One's initial balance sheet holdings.

Twenty One is part of a growing trend of publicly traded entities that primarily exist to acquire Bitcoin and offer investors alternative forms of exposure to the asset. Notably, the Trump family has recently entered this space through Trump Media and Technology Group, which plans to raise approximately $2.5 billion to invest in Bitcoin.