Tether-backed Bitcoin Treasury Firm Twenty One Capital Secures $685 Million in Total Funding with Latest Convertible Notes Sale

Twenty One Capital, a Bitcoin-focused investment firm backed by Tether, SoftBank, and Cantor Fitzgerald, has raised an additional $100 million through convertible senior secured notes, bringing its total financing to $685 million. This latest funding round, disclosed on May 29, positions the company to strengthen its Bitcoin treasury as it prepares for a merger with Nasdaq-listed Cantor Equity Partners (CEP) to become a publicly traded entity. The move underscores growing institutional interest in Bitcoin as a corporate treasury asset, with Twenty One Capital emerging as a significant player in the space.

Latest Funding Round Details

The $100 million raise, detailed in an updated SEC Form 8-K filing, comes from existing investors and sponsors exercising their option to purchase additional convertible notes. These notes, carrying a 1% annual interest rate and maturing in 2030, are part of a strategic effort to fuel Twenty One Capital’s Bitcoin acquisition strategy. The firm, led by Strike founder Jack Mallers, plans to use the proceeds to purchase additional Bitcoin and support general corporate operations.

In April, Twenty One Capital secured $585 million through a combination of $385 million in convertible senior secured notes and $200 million in common equity private investment in public equity (PIPE) financing. The latest $100 million infusion builds on this foundation, reflecting strong investor confidence in the company’s Bitcoin-native approach. Following the announcement, shares of Cantor Equity Partners (CEP), the Nasdaq-listed company set to merge with Twenty One Capital, surged 4.96% in trading on May 29, closing at $42.11.

Strategic Vision and Bitcoin Treasury

Twenty One Capital, launched through a special-purpose acquisition company (SPAC) merger with Cantor Equity Partners, aims to maximize Bitcoin ownership per share, positioning itself as a “Bitcoin-native” public company. At its inception in April, the company announced it would launch with over 42,000 BTC, valued at approximately $4.44 billion based on a Bitcoin price of $105,800 as of press time.

On May 13, Twenty One Capital acquired 4,812 BTC for $458.7 million at an average price of $95,319 per BTC, facilitated by Tether and held in escrow pending the merger’s closure. According to data from BitcoinTreasuries, Twenty One Capital holds 31,500 BTC, making it the world’s third-largest corporate Bitcoin holder, behind Strategy (580,250 BTC) and MARA Holdings (48,137 BTC).

Leadership and Backing

Jack Mallers, co-founder and CEO of Strike, leads Twenty One Capital, bringing his expertise in Bitcoin infrastructure to the venture. The company is majority-owned by Tether and iFinex, with SoftBank holding a minority stake. Brandon Lutnick, son of U.S. Commerce Secretary and former Cantor Fitzgerald chairman Howard Lutnick, spearheads the SPAC structure through Cantor Equity Partners. Cantor Fitzgerald, a long-time partner of Tether, holds 99% of Tether’s U.S. Treasury bill reserves, underscoring the deep financial ties between the entities.

Twenty One Capital’s $458.7 million Bitcoin purchase underscores strong institutional confidence in the long-term value of cryptocurrency. As the company continues to amass its holdings and develop Bitcoin-centric services, it could play a pivotal role in bridging traditional finance and crypto markets.

“Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant assets, and its role as the foundation of a new financial system is inevitable,” Tether CEO Paolo Ardoino previously stated. “We believe that Bitcoin is the answer, and Twenty One is how we bring that answer to public markets.”