Twenty One announces it will launch with over 42,000 BTC in holdings

Twenty One Capital, Inc., a newly formed Bitcoin company, today announced that it has entered into a definitive agreement with Cantor Equity Partners, Inc. (NASDAQ: CEP). Upon completion of the business combination, Twenty One will be majority-owned by Tether and Bitfinex, with SoftBank Group holding a significant minority stake. Twenty One and CEP have also entered into subscription agreements with investors to raise an additional $585 million of aggregate capital upon closing of the transaction. Twenty One and CEP have also entered into subscription agreements with investors to raise an additional $585 million of aggregate capital upon closing of the transaction, consisting of (i) $385 million through convertible senior secured notes and (ii) $200 million through a common equity private equity (PIPE) financing (the “PIPE Financing”). The net proceeds from the PIPE Financing will be used to purchase additional Bitcoin concurrently with the completion of the business combination and for general corporate purposes. Twenty One expects to start with a holding of more than 42,000 Bitcoins, which would make it the third largest Bitcoin reserve holder in the world to date. Twenty One aims to accumulate Bitcoin and increase holdings per share, rather than just tracking Bitcoin prices.

Earlier news, people familiar with the matter said that Cantor will work with SoftBank and Tether to establish a $3 billion crypto joint venture to invest in Bitcoin.