Cantor Fitzgerald and partners launch $3.6 billion bitcoin venture

In the United States, a new corporate bitcoin venture known as Twenty One Capital has been formed by investment firm Cantor Fitzgerald, stablecoin giant Tether, and SoftBank Group. This initiative, which aims to cater to Wall Street institutions, recently made headlines by planning to go public through a merger with Cantor Equity Partners, a special purpose acquisition company (SPAC). The partnership came shortly after President Trump announced a strategic bitcoin reserve, emphasizing the administration's aspirations for the U.S. to become the 'crypto capital of the world.' Twenty One Capital is expected to launch with approximately 42,000 bitcoins, valued at around $3.6 billion, pooled through financial contributions from its backers: Tether has committed $1.5 billion, Bitfinex $600 million, and SoftBank $900 million. Following the completion of this transaction, the company will become the third-largest corporate holder of bitcoin, surpassed only by Strategy and a bitcoin mining firm. The venture plans to proliferate its crypto assets further by securing additional financing of $585 million, comprising $385 million in convertible senior secured notes and a $200 million private investment in public equity (PIPE). This funding will enable Tether to purchase bitcoin equivalent to the net proceeds from these sales, further solidifying Twenty One Capital's position in the ever-evolving crypto market. The ambitious goal of the new entity is to innovate financial products centered around Bitcoin, including lending models and capital market instruments. It seeks to offer alternatives that align better with the principles of cryptocurrency, creating a corporate structure that can potentially redefine traditional financial tools. Unlike many existing entities in the cryptocurrency space, Twenty One Capital plans to present two unique metrics for investors: Bitcoin Per Share (BPS) and Bitcoin Return Rate (BRR). These metrics will demonstrate the number of coins held per share and the growth of these holdings, respectively, although they don't provide tangible returns to investors. As shares of Cantor Equity Partners begin trading on Nasdaq under the symbol CEP, anticipation builds around Twenty One Capital's future endeavors. The company's strategic vision reflects inspirations from rivals like Strategy, known for leveraging financial engineering to dramatically increase its market capitalization far beyond the value of the actual bitcoin it holds. This new venture represents a significant shift in how institutional investors may interact with bitcoin and could spark renewed interest in the often-volatile cryptocurrency sector, prompting discussions about investment strategies in the emerging financial landscape.