Bitcoin's Institutional Leap: How Tether, SoftBank, and Jack Mallers Are Shaping the Future of Digital Currency
5min read 
The convergence of two seismic forces—Bitcoin’s ascent as a mainstream financial asset and the institutionalization of crypto—has birthed a new entity: Twenty One. Launched through a business combination between Tether, SoftBank Group, Jack Mallers, and Cantor Equity Partners (CEP), this Bitcoin-native company is poised to redefine how institutions engage with cryptocurrency. Here’s why investors should pay attention.
The Deal: A Blueprint for Bitcoin’s Institutionalization
The merger, expected to close in 2025 pending regulatory approvals, combines Tether’s dominance in stablecoins, SoftBank’s capital, and Mallers’ vision for Bitcoin adoption. Here’s the math:
- Valuation: Twenty One is priced at a $3.6 billion pro forma enterprise value, calculated using a Bitcoin price of $84,863.57 (a 10-day average from April 2025). This reflects a bullish bet on Bitcoin’s trajectory.
- Proceeds: The transaction will raise $540 million, sourced from a mix of convertible notes and equity PIPEs (private investments in public equity), plus CEP’s trust account. A further $100 million convertible option adds flexibility.
- Bitcoin Holdings: The company will launch with 42,000 Bitcoin, making it the third-largest corporate Bitcoin holder globally—a critical mass that underscores its commitment to long-term accumulation.
This valuation and capital stack are notable. Tether’s backing signals confidence in Bitcoin’s macro story, while SoftBank’s participation—known for high-risk, high-reward bets—hints at a belief in Bitcoin’s role in the future of finance.
The Strategic Play: Beyond Bitcoin Accumulation
Twenty One isn’t just a Bitcoin treasury. Its ambition is to build a Bitcoin-native financial ecosystem, replacing legacy systems with crypto-aligned tools. Key pillars include:
- New Metrics for a New Economy
- Bitcoin Per Share (BPS): A metric replacing traditional earnings, measuring Bitcoin ownership per share.
Bitcoin Return Rate (BRR): Tracking BPS growth over time. These metrics aim to align investor incentives with Bitcoin’s rise.
Financial Innovation
The company plans to develop Bitcoin-backed lending products, capital market instruments, and media content to educate institutional players. For example, a Bitcoin-denominated bond or a yield-generating staking platform could tap into demand from corporations seeking exposure without direct custody risks.Mission-Critical Focus
CEO Jack Mallers, founder of Strike, has built a reputation for scaling Bitcoin adoption. His leadership suggests Twenty One will prioritize real-world use cases, such as payment rails or corporate treasury diversification.
Risks and Regulatory Crossroads
The deal isn’t without hurdles. First, regulatory uncertainty looms large. Bitcoin’s classification—asset, commodity, or currency—remains contested, with the SEC scrutinizing everything from stablecoins to SPACs in crypto.
Last Price($)  | Last Change% | Theme | Amount of Holding(Share)2025.02.28 | Amount of Holding(Share)2025.03.31 |
|---|---|---|---|---|
| 4.19 | 2.20% | Information Technology,Application Software,Software & Services,Software,Cryptocurrencies | 68.60M | -- |
| 351.02 | 2.47% | Software,Application Software,Cryptocurrencies,Software & Services,Information Technology | -- | 916.12K |
| 198.98 | 4.72% | Metaverse,Cryptocurrencies,Financials,Capital Markets,Diversified Capital Markets,Financial Services | -- | 906.45K |
| 14.54 | 3.38% | Information Technology,Software & Services,Software,Application Software,Blockchain Economy,Cryptocurrencies | -- | 1.44M |
| 7.53 | 5.69% | Information Technology,Software & Services,Blockchain Economy,Software,Application Software,Cryptocurrencies | -- | 2.11M |
| 10.07 | 7.35% | Software & Services,Information Technology,Blockchain Economy,Cryptocurrencies,Software,Application Software | -- | 6.11M |
| 9.09 | 3.59% | Software,Cryptocurrencies,Application Software,Information Technology,Software & Services | -- | 1.07M |
| 2.88 | 8.49% | Application Software,Information Technology,Software & Services,Software,Cryptocurrencies | -- | 999.77K |
| 0.80 | 7.96% | Information Technology,Semiconductors,Blockchain Economy,Cryptocurrencies,Semiconductors & Semiconductor Equipment | -- | 1.18M |
| 12.50 | 6.02% | Information Technology,Software & Services,Software,Cryptocurrencies,Application Software | -- | 918.49K |
Ticker |
|---|
| CANGCango |
| MSTRMicrostrategy |
| COINCoinbase Global |
| MARAMARA Holdings |
| RIOTRiot Platforms |
| BTDRBitdeer |
| CLSKCleanSpark |
| WULFTeraWulf |
| CANCanaan |
| HUTHut 8 |
Second, market volatility could pressure the valuation. If Bitcoin’s price falls below $84k, the pro forma value could shrink, and investor confidence might waver. Third, CEP shareholder redemptions could reduce the $100 million trust account proceeds, squeezing capital availability.
Conclusion: A Stake in Bitcoin’s Future
Twenty One’s launch is a watershed moment. Backed by Tether’s liquidity, SoftBank’s capital, and Mallers’ execution, it offers investors exposure to Bitcoin’s growth through a structured, regulated vehicle. The $3.6 billion valuation and 42,000 Bitcoin holdings are not just numbers—they’re markers of institutional credibility.
Crucially, the shift to BPS and BRR metrics could redefine how crypto companies report value, aligning with Bitcoin’s decentralized ethos. While risks like regulation and price swings persist, the deal’s execution—fully committed PIPEs, a clear path to Nasdaq under ticker XXI, and a leader like Mallers—suggests this is a calculated play, not a speculative gamble.
For investors, Twenty One represents a bet on two inevitabilities: Bitcoin’s evolution from speculative asset to institutional staple, and the need for a trusted intermediary to navigate that transition. In a crypto landscape still seeking legitimacy, this merger just got a lot closer to the bull’s-eye.
