Twenty One Capital Raises $100 Million for Bitcoin Holdings

TLDR

• Twenty One Capital raised $100 million for Bitcoin investments.
• Total funds for Bitcoin now reach $685 million.
• Firm aims to exceed MARA Holdings’ Bitcoin reserves.

Twenty One Capital has successfully raised $100 million to increase its Bitcoin holdings. The company, formed through a SPAC merger with Cantor Equity Partners, is supported by prominent investors including Tether, SoftBank, and Bitfinex. This latest funding is part of a strategy to exceed MARA Holdings’ Bitcoin reserves and establish a strong position in the cryptocurrency market.

The company’s new funding comes from convertible notes, raising its total funds for Bitcoin investments to $685 million. Jack Mallers, best known for founding the Bitcoin payments app Strike, leads Twenty One Capital. Under his guidance, the firm aims to prioritize Bitcoin acquisitions over other forms of cryptocurrency or alternative assets.

Support from Major Industry Players

Tether CEO, Paolo Ardoino, has emphasized this Bitcoin-first approach in alignment with their broader vision. SEC filings detail that Tether has already contributed $1.5 billion, SoftBank $900 million, and Bitfinex $600 million. Together, these investments support a significant push to enhance Bitcoin’s role in corporate treasury management.

The backing from these prominent financial entities underscores a broader institutional confidence in Bitcoin. This move aligns with similar strategies previously seen with companies like MicroStrategy, known for substantial Bitcoin acquisitions used to bolster their balance sheets.

Impact on Bitcoin and Market Dynamics

Twenty One Capital’s significant Bitcoin accumulation could influence market liquidity. The latest additions to its treasury might absorb a considerable amount of available supply in the spot market, affecting potential buyers. The firm now holds one of the largest public Bitcoin treasuries, with acquisitions possibly reaching up to 36,312 BTC.

Although specific on-chain data like TVL or staking flows are unavailable, the effect on the Bitcoin market might be considerable. Historically, such significant treasury additions tend to positively influence Bitcoin’s price and market sentiment.

Institutional and Community Reactions

Responses from the crypto community highlight growing interest in corporate Bitcoin treasury strategies. Discussions continue on social media about the institutional race to accumulate Bitcoin, with some eyeing the potential to surpass MARA’s holdings.

Despite the significant financial commitment, there is no direct impact on other cryptocurrencies or decentralized finance tokens, as the focus remains solely on Bitcoin. This initiative further signals companies’ increasing trust in Bitcoin as a robust reserve asset.

“Twenty One will take a Bitcoin-first approach that aligns with our vision—prioritizing accumulation over speculation and building long-term value for those who understand what Bitcoin represents.”

Paolo Ardoino, CEO, Tether