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 serious participant within the crypto business as a result of it manages lots 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 immediately intends to compete with the leveraged BTC acquisition technique of Michael Saylor’s MicroStrategy.
Twenty One will increase $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 Trade Fee (SEC) and shareholder approval, the one publicly-listed entity for merchants to invest on the deal is a minority stakeholder, Cantor Fairness Companions (CEP).
The boards of administrators for Twenty One and CEP unanimously accepted 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 based mostly on a professional forma possession desk illustrating potential post-conversion possession of Twenty One.
Topic to a litany of circumstances and disclaimers, the share 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 will probably be among the many smallest members of the XXI cap desk.
Solely two entities will have the ability to vote sooner or later firm, in response to an illustrative professional forma possession disclosure: Tether/Bitfinex, and Softbank. Tether/Bitfinex will get pleasure from overwhelming management of the corporate, with 71% voting energy.
Satoshi is both rolling over in his grave or punching holes by way of their pc 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 actually 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. Right now, 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 price of encumbered BTC at at present’s costs.
For context, the market cap of CEP is $290 million — greater than double that BTC worth — at a CEP share value of $28.
