Bitcoin Venture Twenty One Launched With $3.6B Value

Cantor Fitzgerald, SoftBank, Bitfinex, and Tether have joined forces to launch a multi-billion dollar venture focused on Bitcoin. The new company, named Twenty One, will be established through a business combination with the SPAC Cantor Equity Partners, with a pro-forma enterprise value of $3.6 billion. Twenty One will commence operations with over 42,000 BTC, aiming to rival Michael Saylor's Strategy by prioritizing Bitcoin ownership over fiat earnings per share.

Tether is set to contribute $1.5 billion worth of Bitcoin to Twenty One, while SoftBank will contribute $900 million and Bitfinex will supply $600 million. These investments will eventually be converted into equity at a $10 per share valuation. Cantor Fitzgerald will also assist Twenty One in raising an additional $385 million via convertible notes and $200 million through a private equity placement for further Bitcoin purchases.

Jack Mallers, known for his Bitcoin-first ethos as the CEO of payments app Strike, will lead Twenty One. The company plans to develop Bitcoin-focused financial products and media content, positioning itself as a public stock "built by Bitcoiners, for Bitcoiners."

This strategic move by these prominent financial entities underscores a growing trend in the financial industry towards embracing Bitcoin as a core asset. By pooling their resources and expertise, these firms aim to create a robust platform that not only maximizes Bitcoin ownership but also fosters innovation in the Bitcoin ecosystem. The involvement of high-profile figures like Jack Mallers further solidifies the venture's credibility and potential impact on the market.

The launch of Twenty One is a significant development in the Bitcoin landscape, as it represents a concerted effort by major players to leverage the cryptocurrency's potential. The company's focus on Bitcoin ownership and the development of related financial products aligns with the broader industry trend of integrating Bitcoin into traditional financial systems. This initiative is likely to attract more institutional investors and further legitimize Bitcoin as a viable asset class.