Tether, SoftBank Group, and Jack Mallers have launched Twenty One, a Bitcoin-native company, by combining with Cantor Equity Partners.
Takeaway Points
- Twenty One will be majority-owned by Tether, co-founder of Twenty One and the world’s largest stablecoin issuer, and Bitfinex.
- The Board of Directors of each of Twenty One and CEP has approved the transaction.
- Skadden, Arps, Slate, Meagher & Flom (UK) LLP is acting as legal advisor to Twenty One and Tether.
The Launch of Twenty-One
Twenty One Capital, Inc., a newly formed entity, announced on Wednesday that it has entered into a definitive agreement for a business combination with Cantor Equity Partners, Inc., a special-purpose acquisition company (SPAC) sponsored by an affiliate of Cantor Fitzgerald, a leading global financial services and real estate services holding company.
According to the report, at the closing of the business combination, Twenty One will be majority-owned by Tether, co-founder of Twenty One and the world’s largest stablecoin issuer, and Bitfinex, with significant minority ownership by SoftBank Group Corp.
Jack Mallers, Co-Founder and CEO of Twenty One, commented, “Markets need reliable money to measure value and allocate capital efficiently. We believe that Bitcoin is the answer, and Twenty One is how we bring that answer to public markets. Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time. We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners.”
Paolo Ardoino, CEO of Tether, remarked, “Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant asset, and its role as the foundation of a new financial system is inevitable. With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption and reinforce its role as the ultimate store of value. At Tether, we have always believed in supporting initiatives that strengthen Bitcoin’s dominance and real-world utility. 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.”
Who will lead the Twenty-One?
As part of its launch, Twenty One will introduce two key performance metrics to reflect its Bitcoin-denominated capital structure and Bitcoin-focused mindset, the report stated.
Cantor said that Twenty One will be led by Co-Founder and CEO Jack Mallers, who has been helpful in promoting Bitcoin’s adoption by institutions, corporations, and governments worldwide, and will continue with his existing roles and responsibilities.
Shares of Cantor Equity Partners will continue to trade on Nasdaq under the symbol “CEP” until the closing of the transaction.
The board of directors of each of Twenty One and CEP has approved the transaction, and the transaction will require the approval of the shareholders of CEP and is subject to customary closing conditions, Cantor added.
The Advisors
The firm said that Cantor Fitzgerald & Co. is acting as financial and capital markets advisor to CEP. Ellenoff Grossman & Schole LLP is acting as legal advisor to CEP, while Skadden, Arps, Slate, Meagher & Flom (UK) LLP is acting as legal advisor to Twenty One and Tether. Sullivan & Cromwell LLP is acting as legal advisor to SoftBank Group, and Cantor Fitzgerald & Co. served as placement agent for the convertible senior secured note and common equity PIPE financings.
About Twenty-One
At closing, Twenty One will become the first Bitcoin-native public company, built to maximize Bitcoin ownership per share. Twenty One aims to be the most effective public vehicle for Bitcoin accumulation and monetization, with a mission to accelerate Bitcoin adoption and Bitcoin literacy and a pursuit of strategies to develop a range of Bitcoin-related financial and advisory services.
About SoftBank Group
The SoftBank Group invests in breakthrough technology to improve the quality of life for people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes stakes in AI, smart robotics, IoT, telecommunications, internet services, and clean energy technology providers, as well as a majority stake in Arm, which is building the future of computing; and the SoftBank Vision Funds, which are investing to help transform industries and shape new ones.
About Cantor Equity Partners, Inc.
Cantor Equity Partners (Nasdaq: CEP) is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or other similar business combination with one or more businesses or entities. CEP is led by Chairman and Chief Executive Officer Brandon Lutnick and sponsored by an affiliate of Cantor Fitzgerald.
