Twenty One Capitals Bold Move to Challenge Bitcoin Giants

Cantor Fitzgerald’s newly established firm, Twenty One Capital, aims to challenge Strategy. The firm has set its initial capital at 42,000 BTC (approximately $3.9 billion).

Of this, around 23,950 BTC will come from Tether, 10,500 BTC from Softbank, and 7,000 BTC from Bitfinex. These organizations are co-founders of Twenty One Capital alongside Cantor Fitzgerald.

In exchange, these partners will receive equity in Twenty One Capital, with their assets being converted into shares at a rate of $10 each, based on an evaluation of $85,000 per BTC.

The leadership of Twenty One Capital will be in the hands of Jack Mallers, the founder of Strike.

The firm promotes itself as «the best tool for investors looking to capture capital-efficient risk in Bitcoin.»

Twenty One Capital seeks to achieve public status through a merger with Cantor Equity Partners. To facilitate this transaction, the firm will raise $385 million through convertible bonds and $200 million through equity sales.

A listing is expected on Nasdaq under the ticker XXI.

«Our mission is to become the most successful Bitcoin company. […] We are here to build a new market,» stated Mallers.

In its presentation, Twenty One Capital claimed that its business model is more advantageous for investors compared to Strategy.

One of its arguments centers on the scale of its competitor: with a balance of 534,741 BTC owned by Michael Saylor’s corporation, any increase in Bitcoin per share would require even larger investments. This would dilute the dollar impact of future investments on each share, according to the press release.

Holding 42,000 BTC will position Twenty One Capital as the third-largest corporate holder of digital gold, following Strategy and MARA.

The firm plans to create various Bitcoin-focused offerings, including debt and equity products, consulting services, lending, and educational platforms.

«Our mission will focus on accelerating the adoption of the first cryptocurrency and improving literacy at both institutional and retail levels,» the company stated.

Additionally, the organization plans to collaborate with industry players by hosting thematic conferences.

Earlier this year, Brandon Lutnick was appointed chairman and CEO of Cantor; he is the son of the firm’s former head, Howard Lutnick, who recently took office as the U.S. Secretary of Commerce.

It’s worth noting that in 2024, the financial company bought a 5% stake in Tether for $600 million.