- Tether, SoftBank Group, and Jack Mallers join forces to launch Twenty One, a Bitcoin-native company.
- Twenty One will launch with over 42,000 Bitcoin, becoming one of the largest Bitcoin treasuries globally.
- The company is raising $585 million through PIPE Offerings to enhance its Bitcoin holdings and corporate initiatives.
Tether, in collaboration with the SoftBank Group and Bitcoin advocate Jack Mallers, has announced the launch of a new venture named Twenty One. This Bitcoin-native company is set to go public through a business combination with Cantor Equity Partners, Inc. (CEP, Financial) (Nasdaq: CEP), a special-purpose acquisition company. The move is expected to create substantial opportunities for investors seeking exposure to Bitcoin and related financial products.
Upon its launch, Twenty One is anticipated to hold over 42,000 Bitcoin, positioning it as the third-largest Bitcoin treasury globally. This strategic accumulation aligns with the company's mission to maximize Bitcoin ownership per share. To solidify this mission, the company will introduce two key performance metrics: Bitcoin Per Share (BPS) and Bitcoin Return Rate (BRR), which will underscore its Bitcoin-centric approach.
The financial backing includes a commitment of $585 million in PIPE Offerings, comprising $385 million through convertible senior secured notes and $200 million via common equity financing. The capital will primarily be used to purchase more Bitcoin and support general corporate purposes.
Jack Mallers, co-founder and CEO of Twenty One, expressed confidence in Bitcoin as a fundamental building block for a new financial system. "Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time," Mallers stated. He emphasized a Bitcoin-first approach, focusing on accumulation and long-term value creation.
The transaction, valued at a pro-forma enterprise value of $3.6 billion based on recent Bitcoin spot prices, is expected to provide approximately $540 million in proceeds to Twenty One. The transaction has been unanimously approved by the boards of both Twenty One and CEP, pending customary closing conditions and shareholder approval.
Shares of Cantor Equity Partners will continue trading on Nasdaq under the ticker "CEP" until the transaction's conclusion, after which Twenty One will seek to trade under the ticker symbol "XXI."
