Cantor Fitzgerald, the financial services firm previously led by US Commerce Secretary Howard Lutnick, is diving into a new Bitcoin acquisition. The firm, is now utilizing a special purpose acquisition company (SPAC) named Cantor Equity Partners to establish a new entity called “Twenty One Capital.”
How Twenty One Capital Aims To Boost Bitcoin Adoption
According to a Fortune report, Twenty One Capital will receive backing from major players in the cryptocurrency world, including stablecoin giant Tether, crypto exchange Bitfinex, and Japanese investment powerhouse SoftBank.
The new company plans to offer investors a way to engage with Bitcoin’s price movements without directly purchasing the cryptocurrency itself. This approach mirrors the strategy employed by Michael Saylor, CEO of Strategy, who has been a vocal advocate for BTC.
The mission of Twenty One Capital is reportedly to serve as a public vehicle for Bitcoin accumulation and monetization while enhancing BTC literacy and adoption.
The company aims to support the development of financial products built around BTC and produce educational content related to the cryptocurrency. “Twenty One aims to be the most effective public vehicle for Bitcoin accumulation and monetization,” an official announcement reads.
The company has also secured agreements to raise an additional $585 million in capital, which will be directed toward further Bitcoin purchases. This funding was partially raised through convertible notes, a form of debt that can later be converted into equity.
Success For Some, Struggles For Others
The strategy of accumulating Bitcoin has proven lucrative for some companies. Saylor’s Strategy, for example, has amassed a staggering 538,200 BTC since 2020, worth nearly $50 billion at current market prices, leading to a 2,600% increase in its stock value.
This success has sparked interest from other firms looking to capitalize on the rising popularity of BTC, including medical device company Semler Scientific and electric vehicle manufacturer Tesla.
However, not all companies have enjoyed the same success with Bitcoin investments. GameStop, the video game retailer that has faced significant challenges in recent years, announced in March its intention to begin stockpiling Bitcoin.
Initially, this announcement led to a 14% surge in GameStop’s shares, but the stock soon fell by 23% in subsequent days. Despite successfully raising $1.3 billion for Bitcoin acquisitions, GameStop’s stock has declined by 10% year-to-date, highlighting the volatility and risks associated with Bitcoin investments.
When writing, BTC trades at $92,000, recovering by 7% in the weekly time frame. This comes after a notable decline that saw the market’s leading cryptocurrency drop to a yearly low of $74,000 earlier this year attributed to Trump’s tariff policies.
Featured image from DALL-E, chart from TradingView.com
