Investment firms Tether, Cantor, and Softbank discovered Twenty One amassing Bitcoins
In a significant move for the cryptocurrency market, a new Bitcoin-focused company named Twenty One has been founded, backed by Tether, Bitfinex, and SoftBank. The company, with an initial capital of 42,000 BTC, currently worth approximately four billion dollars, aims to aggressively accumulate more BTC through capital raises.
Tether, the stablecoin issuer, holds around 100,000 BTC as part of its asset portfolio. If Tether wants to continue operating in the U.S., it may need to shift its BTC off the balance sheet, and transferring them to Twenty One could be a possible solution. Tether has contributed BTC worth $1.5 billion to Twenty One, Bitfinex $900 million, and SoftBank $600 million.
Jack Mallers, the founder of Strike, will be the CEO of Twenty One. Brandon Lutnick, son of the U.S. Trade Minister, is the founder of Twenty One, along with Cantor Equity Partners and other partners. Howard Lutnick, the U.S. Trade Minister's son, was the CEO of Cantor Fitzgerald until his appointment in February 2025, and he appointed his sons Brandon and Kyle as the current and deputy CEO of the financial institution respectively.
Masayoshi Son, CEO of SoftBank, had invested $200 million in BTC but sold the coins in 2018 at a loss due to distraction from constantly watching the BTC price. SoftBank, a Japanese technology conglomerate, has invested in the crypto market since around 2020, including Web3 infrastructure, the bankrupt exchange FTX, and the Brazilian exchange Mercado Bitcoin.
The U.S. is preparing for BTC to replace the dollar as the global reserve currency, and companies like MicroStrategy and Twenty One will play a big role in converting parts of the dollar flood into national BTC reserves. However, the U.S. is set to regulate stablecoins through the GENIUS Act, but BTC is not on the list of qualifying collateral assets.
Tether, as a stablecoin issuer, must use cash, cash equivalents, U.S. Treasury bonds, and other short-term U.S. government debt securities as collateral reserves for its stablecoins to comply with the GENIUS Act in the United States. Twenty One, on the other hand, may serve as a vehicle for Tether to transform some of its BTC into another form while complying with future regulations.
Twenty One will maximize BTC per share and will raise capital worth $585 million. With its large-scale BTC accumulation efforts, Twenty One is one of the second US companies setting a BTC standard. As the cryptocurrency market continues to evolve, the role of companies like Twenty One could become increasingly significant.
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