Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick, is collaborating with industry heavyweights SoftBank, Tether, and Bitfinex to establish a new Bitcoin acquisition vehicle called Twenty One Capital. This initiative seeks to consolidate cryptocurrency assets amidst shifting policy landscapes potentially prompted by a second Trump administration.
Reported by the Financial Times, the venture is set to launch with an initial reserve of 42,000 Bitcoin, which would position it amongst the top three holders worldwide. Twenty One Capital intends to achieve its goals through a reverse merger with Cantor Equity Partners, a special purpose acquisition company (SPAC) founded by Lutnick, which raised $100 million last year.
The company’s strategy mirrors that of MicroStrategy, which successfully transitioned from software to extensive Bitcoin investments, significantly increasing its market valuation. At a Bitcoin price of $85,000, Twenty One Capital’s valuation could reach $3.6 billion, inclusive of debt, and it plans to list publicly on Nasdaq under the ticker “XXI” post-merger.
The project is supported by a mix of contributions, with Tether expected to inject at least $1.5 billion of Bitcoin. The remaining funds will come from Bitfinex and SoftBank, both of which share a parent company with Tether.
Cantor Equity Partners aims to enhance its Bitcoin reserves by raising $385 million through convertible bonds and an additional $200 million via private equity placement. Jack Mallers, known for his leadership role in the cryptocurrency platform Strike, will head the new entity, which will be primarily owned by Tether and Bitfinex, while SoftBank retains a minority stake.
This partnership cultivates existing relationships as Tether’s dollar reserves are managed largely through Cantor Fitzgerald, where Tether CEO Paolo Ardoino highlighted strong ties and high custodied treasury holdings. As Bitcoin’s price remains volatile, currently around $93,000 following a peak of $106,000 post-US elections, the new venture comes when digital asset firms are closely monitoring US regulatory developments.
With the Trump campaign suggesting a more lenient stance on cryptocurrency, there’s speculation that this could spur renewed market activity.