US Commerce Secretary Lutnick’s son, Brandon Lutnick, overtook his father’s asset administration firm, Cantor Fitzgerald, when his father accepted President Donald Trump’s cupboard appointment. This week, Brandon introduced a brand new competitor to MicroStrategy, Twenty One, led by Tether.
Cantor is a significant participant within the crypto trade as a result of it manages most of the bonds backing Tether’s USDT stablecoin. Howard and Brandon Lutnick have staunchly supported Tether.
Yesterday, Cantor Chairman Brandon introduced a Tether-controlled bitcoin (BTC) acquisition firm involving Tether, SoftBank, and Jack Mallers, the founding father of Strike. Mallers will lead the corporate as CEO.
The entities, blessed by the son of a Trump cupboard member, are forming Twenty One (NASDAQ:XXI). XXI is the Roman numeral image for 21, a reference to BTC’s 21 million provide restrict.
Twenty One: Tether-controlled, Jack Mallers-led
The corporate will purchase and handle a big treasury of over 42,000 BTC. If that technique sounds acquainted, it instantly intends to compete with the leveraged BTC acquisition technique of Michael Saylor’s MicroStrategy.
Twenty One will elevate $585 million from the sale of $385 million in convertible senior secured notes plus $200 million in PIPE financing.
As a result of Twenty One is present process a particular function acquisition firm (SPAC) enterprise mixture topic to Securities and Change Fee (SEC) and shareholder approval, the one publicly-listed entity for merchants to take a position on the deal is a minority stakeholder, Cantor Fairness Companions (CEP).
The boards of administrators for Twenty One and CEP unanimously authorised the enterprise mixture.
2.7% of 42,000 bitcoin
Though Twenty One plans to personal one thing like 42,000 BTC when it begins buying and selling as XXI, CEP shareholders may solely get 2.7% of that determine primarily based on a professional forma possession desk illustrating potential post-conversion possession of Twenty One.
Topic to a litany of situations and disclaimers, the proportion may even be decrease upon closing or as time progresses.
Not solely will the corporate be indebted and its BTC be encumbered with a dizzying array of obligations that one observer mentioned would make Satoshi Nakamoto roll in his grave, CEP shareholders shall be among the many smallest members of the XXI cap desk.
Solely two entities will be capable to vote sooner or later firm, in keeping with an illustrative professional forma possession disclosure: Tether/Bitfinex, and Softbank. Tether/Bitfinex will take pleasure in overwhelming management of the corporate, with 71% voting energy.
Satoshi is both rolling over in his grave or punching holes by means of their laptop this slide within the Twenty One pitchdeck. pic.twitter.com/pC8o5VtL7Z
— Liam J. Kelly (@Liam_Gallas) April 24, 2025
Greater than doubled in two days
Though securities regulator Gary Gensler resigned (earlier than Trump had the chance to fireplace him) and has left any authorized enforcement to a extremely accommodative SEC, the worth motion in CEP this week has definitely raised eyebrows.
On Tuesday, CEP closed for buying and selling at $10.62 — close to the place it had been buying and selling for weeks. On the day of the announcement, it closed at $16.50. In the present day, CEP hit $39.29.
If CEP finally ends up proudly owning 2.7% of 42,000 encumbered BTC — which is, once more, an illustrative projection from a SEC submitting which may not really happen — it might personal about $106 million value of encumbered BTC at right this moment’s costs.
For context, the market cap of CEP is $290 million — greater than double that BTC worth — at a CEP share worth of $28.
