Twenty One Raises $100 Million in Latest Funding Round

Twenty One, a Bitcoin treasury firm, has successfully raised an additional $100 million through convertible senior secured notes. This latest funding round brings the firm's total capital raised to $685 million, as it progresses towards a planned merger with Cantor Equity Partners (CEP), a company listed on the Nasdaq. The information was disclosed in a filing with the U.S. Securities and Exchange Commission on Thursday.

The new financing was provided by existing investors and sponsors who exercised their option to purchase more of the notes, which were initially offered during the April fundraising round. The new notes have a 1% coupon and are set to mature in 2030. This $100 million addition comes on top of the $385 million initially committed, making the total note financing $485 million. Additionally, the firm had previously disclosed $200 million in private investment in public equity (PIPE) last month.

Twenty One is part of a growing trend of firms adopting a crypto treasury strategy, similar to Michael Saylor's MicroStrategy (MSTR). The firm is being launched by Brandon Lutnick, the son of the U.S. Commerce Secretary and former Cantor Fitzgerald chairman Howard Lutnick, through a special-purpose acquisition company (SPAC) structure using Cantor Equity Partners. Notable owners include iFinex, the parent company of Bitfinex, and Tether, the issuer of the $150 billion USDT. The company will be led by Strike CEO Jack Mallers.

Recently, Twenty One disclosed a significant Bitcoin acquisition of $458 million, further solidifying its position in the crypto market. This strategic move aligns with the firm's goal of leveraging Bitcoin as a core asset in its treasury management strategy. The merger with Cantor Equity Partners is expected to provide additional resources and market access, enhancing Twenty One's capabilities in the rapidly evolving crypto landscape.