Twenty-One Capital, a company focused on the bitcoin ecosystem that came public via a SPAC has launched with $4 billion worth of Bitcoin holdings, backed by SoftBank, Tether, Bitfinix and Cantor Fitzgerald via Cantor Equity Partners (CEP).
The company, which describes itself as a “bitcoin pure play,” will also use the capital to invest in bitcoin-related products and infrastructure.
Last month, Twenty One said in a press release that has also entered into subscription agreements with investors to raise $585 million in additional capital. About $385 million will be financed through convertible senior secured notes, while the remaining $200 million will be in the form of common equity PIPE (private investment in public equity) financing.
Twenty One is not the first to establish itself as a purely Bitcoin-focused company. Strategy, formerly MicroStrategy is the most popular in that category. However, unlike Strategy, Twenty One sees itself as a full-on operating company – with revenue-generating plans, and product ideas revolving around Bitcoin and others.
While calling Twenty One’s launch “suspicious” in April, Strategy CEO Michael Saylor went on to acknowledge the positivity the move brings to the industry.
“It’s good for the entire industry because it’s generating positive awareness of the opportunity — and it’s very legitimizing to see these companies making big investments. I hope there are 10 more.” But analysts think Twenty One could actually be a serious competitor to Strategy given the new company’s financial backing from both traditional financial services companies and major crypto players, according to a Bloomberg report.
After applying for a SPAC merger last year, Twenty One completed the process in March this year and began trading publicly on the Nasdaq exchange.
Majority-owned by Tether, the world’s largest stablecoin issuer and Bitfinex, the company also has significant minority ownership stakes from SoftBank Group Corp and several other investors.
Jack Mallers, Co-Founder and CEO of Twenty One said the company believes that markets need reliable money to measure value and allocate capital efficiently and that Bitcoin is the answer.
“Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time,” Mallers concluded.
