Tether, Cantor, and Softbank discover Twenty One hoarding Bitcoins
SoftBank-Backed Bitcoin Venture, Twenty One, Set to Shake Up Crypto Market
In a move that could reshape the crypto landscape, a new Bitcoin-focused company called Twenty One has been founded by Brandon Lutnick, son of the U.S. Secretary of Commerce, alongside Cantor Equity Partners. The venture, which aims to maximize the number of bitcoins per share, has raised an initial capital of 42,000 bitcoins, currently valued at approximately four billion dollars.
Twenty One boasts a strong backing from industry heavyweights, including Tether, Bitfinex, and SoftBank. Tether, the sister company of Bitfinex, and together they will be the main owners of Twenty One, contributing bitcoins worth $1.5 billion, Bitfinex $900 million, and SoftBank $600 million.
SoftBank, a Japanese technology conglomerate, is no stranger to the crypto market, having made investments since around 2020. Its involvement in Twenty One reflects its strategy to drive growth through technological innovation and ecosystem building, rather than conventional banking activities. The company has previously invested in Web3 infrastructure, the bankrupt exchange FTX, and the Brazilian exchange Mercado Bitcoin.
Twenty One's CEO will be Jack Mallers, founder of Strike, a Lightning app. The company's success will be measured by two key metrics: bitcoins per share (BPS) and the "Bitcoin Return Rate" (BRR).
The formation of Twenty One comes at a time when the U.S. is preparing for Bitcoin to potentially replace the dollar as the global reserve currency. Companies like MicroStrategy and soon Twenty One are expected to play a significant role in converting parts of the dollar flood into national Bitcoin reserves.
For Tether, Twenty One could serve as a vehicle to convert some of its bitcoins into another form, potentially allowing it to comply with future regulation while maintaining control over its bitcoin reserves. However, it's important to note that the GENIUS Act, set to regulate stablecoins in the U.S., does not currently include bitcoin as qualifying collateral.
Brandon Lutnick, apart from founding Twenty One, was also previously the acting and deputy CEO of Cantor Fitzgerald. The firm has a long history with Tether, managing Tether's reserves, including more than $80 billion in government bonds.
Masayoshi Son, CEO of SoftBank, has also shown interest in Bitcoin, having invested $200 million in Bitcoin but selling the coins at a loss in 2018. The company's involvement in Twenty One marks a return to the crypto market for SoftBank.
As Twenty One aggressively tries to accumulate Bitcoins through capital raises, it is set to become a significant player in the Bitcoin market. The company's unique structure, strong backing, and ambitious goals make it a venture worth watching in the rapidly evolving crypto landscape.
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