Twenty One Capital Launches With $3.8 Billion Bitcoin Holding

Twenty One Capital, Inc., a venture focused on Bitcoin, has officially launched with significant backing from Tether, SoftBank, and Cantor Fitzgerald. The company is set to commence operations with an impressive initial holding of over 42,000 BTC. Given the current trading price of Bitcoin at approximately $92,500, this holding is valued at around $3.8 billion.

This substantial investment positions Twenty One as one of the largest Bitcoin holders globally. Currently, Strategy leads the group with 534,741 BTC, followed by MARA Holdings with 47,600 BTC. The firm will be led by Jack Mallers, the founder of Strike and a prominent advocate for Bitcoin. Under Mallers' leadership, Twenty One aims to develop Bitcoin-native financial products and services, as well as produce content and media focused on Bitcoin.

“Markets need reliable money to measure value and allocate capital efficiently,” said Mallers. “We believe that Bitcoin is the answer, and Twenty One is how we bring that answer to public markets.”

Twenty One is merging with Cantor Equity Partners and will trade under the ticker XXI. The deal values Twenty One at $3.6 billion and includes $585 million in new capital, raised through a mix of equity and convertible notes. These funds will be used to purchase more Bitcoin and expand the company’s operations.

Post-merger, Tether and Bitfinex will own a majority stake, while SoftBank Group will hold a minority interest. Tether has also committed to purchasing Bitcoin on behalf of Twenty One.

This launch signifies a major step forward in the institutional adoption of Bitcoin. With the backing of prominent financial entities and a clear vision for Bitcoin-native financial products, Twenty One Capital is poised to make a significant impact in the cryptocurrency market. The company's focus on developing financial products and services tailored to Bitcoin, along with its commitment to producing Bitcoin-focused content, underscores its dedication to advancing the use and understanding of Bitcoin in public markets.