Brandon Lutnick and Jack Mallers Launch Groundbreaking Bitcoin Investment Company Backed by Tether and SoftBank

In a significant move for the cryptocurrency sector, Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick and chair of Cantor Fitzgerald, is spearheading a revolutionary bitcoin (BTC) investment vehicle. This venture, called Twenty One Capital, is supported by key players in the crypto space, including Tether, SoftBank, and Bitfinex. With an ambitious aim to reshape how investments in Bitcoin are structured, this initiative promises to be a game-changer for both investors and enthusiasts alike.

The Foundation of Twenty One Capital

Twenty One Capital, set to emerge after a merger with Cantor Equity Partners—a special purpose acquisition company (SPAC)—will be primarily owned by Tether, the issuer of the world’s largest stablecoin. Bitfinex, a major cryptocurrency exchange, will also hold a significant stake. This strategic arrangement positions Twenty One Capital to leverage the financial backing of Tether and Bitfinex, with contributions totaling an impressive $2.1 billion—$1.5 billion from Tether and $600 million from Bitfinex. SoftBank, the renowned investment-holding company, is adding $900 million to the mix, securing a “significant minority” stake.

Ambitious Plans for Bitcoin Acquisition

With a clear focus on expanding its Bitcoin holdings, Twenty One Capital aims to raise an additional $550 million through bonds and private equity. This capital will be utilized to acquire more BTC, positioning the company to launch with over 42,000 BTC in its treasury. This substantial amount places Twenty One Capital in third position for Bitcoin treasury holdings, following MicroStrategy (MSTR) with 538,200 BTC and Marathon Digital Holdings (MARA) with 47,531 BTC.

A Unique Investment Strategy

The investment strategy employed by Twenty One Capital mirrors that of MicroStrategy’s Bitcoin proxy model. This approach involves converting BTC into equity at a valuation close to $85,000 per coin. This innovative strategy is expected to resonate well within the crypto community, especially as Bitcoin’s price hovers around $93,000 amid a resurgence of optimism in the market.

New Metrics for Performance Measurement

To effectively gauge its performance, Twenty One Capital will introduce two new metrics: Bitcoin Per Share (BPS) and Bitcoin Return Rate (BRR). The BPS metric will indicate how much BTC each share represents, while BRR will track the growth of BPS over time. “We’re not here to beat the market; we’re here to build a new one,” Mallers emphasized in a recent statement. This forward-thinking vision highlights the company’s commitment to creating a robust ecosystem for Bitcoin investors.

Regulatory Environment and Market Sentiment

This initiative comes at a time when the regulatory landscape for cryptocurrencies is evolving, particularly under the current administration. As regulatory tailwinds shift, investors are becoming increasingly optimistic about the future of Bitcoin and cryptocurrency in general. For those looking to get involved in Bitcoin or other cryptocurrencies, it’s essential to understand the implications of these changes on the market.

Trading and Market Presence

Once the merger is finalized, shares of Cantor Equity Partners will continue trading on Nasdaq under the CEP ticker symbol. Following the completion of the transaction, Twenty One Capital plans to trade under the new ticker “XXI.” This transition will mark a pivotal moment for the company as it steps into the public markets with its innovative investment vehicle.

Conclusion: A New Era for Bitcoin Investment

The launch of Twenty One Capital signifies a transformative shift in the way Bitcoin investments are approached. With the backing of Tether, SoftBank, and Bitfinex, and led by industry veterans like Brandon Lutnick and Jack Mallers, this venture is poised to attract significant interest from both institutional and retail investors. As the crypto landscape continues to mature, initiatives like Twenty One Capital are essential for fostering growth and innovation within the sector.

For those interested in exploring Bitcoin investment opportunities, consider learning more about how to buy Bitcoin and the various platforms available, such as Kraken, Binance, and eToro. Understanding the market dynamics and investment strategies is crucial for navigating this exciting yet volatile landscape.

As Bitcoin continues to capture the imagination of investors worldwide, staying informed about developments like Twenty One Capital will be key to leveraging the potential of this revolutionary asset class.