The Case for Jack Mallers, Tether, & SoftBank Uniting
The Inside Story of ‘Twenty One’—Wall Street’s Biggest Bitcoin Power Play”
Jack Mallers, Tether, & SoftBank Unite
Introduction
A bombshell new venture—Twenty One—has just burst onto the scene, promising to be the first-ever “Bitcoin-native” public company. In a single stroke, it brings together:
Tether—the world’s largest stablecoin issuer, with deep Bitcoin roots,
SoftBank Group—a global tech investment powerhouse,
Jack Mallers—Lightning Network pioneer, Strike founder, and a rising star in the Bitcoin community,
Cantor Fitzgerald—the venerable Wall Street institution facilitating the deal via its SPAC, Cantor Equity Partners.
They’re merging into a single entity with a stated mission: “Maximize Bitcoin Ownership Per Share.” With 42,000 BTC at launch, Twenty One is set to become the third-largest Bitcoin treasury among public companies. More than a headline, this move signals a pivotal moment in Bitcoin’s mainstream adoption—one that could radically expand institutional and public-market interest in the world’s largest cryptocurrency.
Overview: What Is Twenty One?
Twenty One is being formed through a SPAC merger with Cantor Equity Partners (Nasdaq: CEP).
SPAC (Special-Purpose Acquisition Company): A “blank check” listed on the stock market, designed to merge with a target and take it public.
42,000 Bitcoin: Twenty One aims to accumulate a massive BTC treasury from day one, making it a direct competitor to high-profile Bitcoin holders like MicroStrategy.
Mission: Increase “Bitcoin Per Share” (BPS) over time—essentially giving investors a way to hold stock that represents an ever-growing slice of BTC.
Additional Mandate: Develop Bitcoin-focused financial products, media, and educational content.
When the merger closes, Tether will be the majority owner, while SoftBank holds a sizable minority stake. The presence of big-name institutions—and the leadership of Jack Mallers—makes this an unprecedented coalition.
Figure 1: Projected Ownership Structure
Note: SoftBank’s 10,500 BTC were arranged “on behalf of SoftBank” by Tether prior to closing – essentially, SoftBank committed cash which Tether used to acquire that BTC, to be swapped for SoftBank’s equity at $10/share. Tether and Bitfinex’s holdings include Class A and Class B shares, likely giving them enhanced voting rights (over 50% voting power for Tether alone) to maintain control. This dual-class structure means Tether/Bitfinex will firmly control the company’s direction, aligning with their majority economic stake.
Why This Matters: Institutional Adoption Reaches New Heights
A Template for Others:
Twenty One can become the go-to model for how to blend traditional finance with a Bitcoin-centered strategy. If it succeeds, expect more institutions to follow with similar “Bitcoin SPACs” or direct listings.Accelerating the ‘Bitcoin as Reserve Asset’ Trend:
Tether and SoftBank are making a bet on Bitcoin as the ultimate store of value, not just as a speculative token. The net effect? Mainstream acceptance and a potential rise in corporate treasuries holding BTC.Financial Services on Bitcoin:
Twenty One plans to do more than just “HODL.” It aims to build Bitcoin-denominated loans, bonds, and other instruments, creating a suite of Bitcoin-native products under the umbrella of a public company.Reshaping the Narrative:
With a built-in media and education focus, Twenty One plans to change how people discuss Bitcoin—highlighting sustainability, use-cases, and building out infrastructure instead of fixating on price swings.
Figure 2: Comparison of Public BTC Investment Vehicles
Key Players and Their Roles
1. Jack Mallers: The Bitcoin Icon at the Helm
Founder & CEO of Strike: Jack’s payment platform leverages Bitcoin’s Lightning Network, aiming to make BTC simple and global.
Why He’s Crucial: Mallers led groundbreaking initiatives (like El Salvador’s Bitcoin adoption) and has become an evangelist for using Bitcoin in real-world finance. As Twenty One’s CEO, his reputation and expertise lend major credibility—and passion—to the company’s pro-Bitcoin stance.
Takeaway: Mallers brings authentic “Bitcoin ethos,” real Lightning Network experience, and a track record of winning institutional and even governmental acceptance for Bitcoin.
2. Tether: From Stablecoin Giant to Bitcoin Powerhouse
Largest Stablecoin Issuer (USDT): Tether is ubiquitous in crypto trading, with billions in daily volume.
Mining & Holdings: Already rumored (and partly confirmed) to be operating large-scale Bitcoin mining and actively purchasing BTC for its corporate reserves.
Strategic Rationale: By co-founding Twenty One, Tether cements Bitcoin’s “hard money” narrative and diversifies its own footprint from stablecoins into direct Bitcoin accumulation.
Majority Ownership: Expect Tether to drive big-picture strategy, ensuring that “Bitcoin-first” really means Bitcoin-first.
Takeaway: Tether’s involvement underscores huge capital firepower behind Twenty One, plus synergy with Tether’s own Bitcoin mining ambitions.
3. SoftBank Group: Big Capital, Big Ambitions
History of High-Profile Tech Bets (Alibaba, Arm, Uber).
New Crypto Thesis: After earlier crypto forays (including FTX), SoftBank is pivoting to Bitcoin as a safer long-term anchor.
Role: Provides significant minority capital (~24% stake), global reach, and potential to scale Twenty One’s business internationally.
Signaling Effect: SoftBank’s stamp of approval suggests institutional capital sees Bitcoin as a legitimate growth sector, not a fringe speculation.
Takeaway: SoftBank invests when it sees multi-decade transformative potential. Putting large sums into Twenty One hints that Bitcoin’s next wave of adoption could be as big as the internet boom SoftBank famously bet on in the ’90s.
4. Cantor Fitzgerald: Wall Street’s SPAC Conduit
Sponsor of the SPAC: Cantor Equity Partners (Nasdaq: CEP).
Why Cantor?: It has a track record in brokerage, capital markets, and earlier crypto deals. Likely sought a visionary target like Twenty One to stand out in the SPAC world.
Financial Engineering: Arranging a $585M PIPE and convertible notes to fund an immediate BTC purchase at closing.
Bridge to Wall Street: Cantor will help navigate listing, compliance, and ongoing capital raises.
Takeaway: Cantor acts as the essential gateway to public markets, turning Twenty One’s massive Bitcoin holdings and bold strategy into a fully tradable stock for mainstream investors.
Bitcoin-Centric Structure: BPS & BRR
At launch, Twenty One will introduce two Bitcoin-denominated metrics:
Bitcoin Per Share (BPS): How many BTC each fully diluted share represents.
Bitcoin Return Rate (BRR): The growth rate of BPS over time.
Why It Matters:
Most publicly traded companies measure success in earnings per share (EPS) in fiat. Twenty One flips the script, showing shareholders how well the firm accumulates BTC—essentially treating Bitcoin, not dollars, as the base currency.
This aligns with a “stack sats” mentality at the corporate level. If BPS rises, it means the company is outperforming simply holding Bitcoin.
Implication: Shareholders get a direct, growing stake in Bitcoin, rather than just exposure to price movements. The more BTC Twenty One acquires (or mines, if Tether’s mining folds in), the higher the BPS.
Figure 3: Hypothetical Bitcoin Per Share (BPS) Growth
Bitcoin-Native Financial Products
From lending to structured products, Twenty One aims to create an entire ecosystem around Bitcoin. Think:
BTC-Denominated Bonds
Bitcoin-Backed Loans
Capital Market Instruments specifically built on the Bitcoin network
This could challenge traditional crypto banks and set new standards for regulation, transparency, and institutional involvement.
Media & Advocacy
Mallers and team want to shape the conversation around Bitcoin through:
Content & Events: As a “Bitcoin evangelist,” Twenty One will likely produce conferences, videos, and materials to shift the BTC conversation from “price speculation” to “global money revolution.”
Regulatory Perception: Success could set a precedent that Bitcoin-based public companies can be transparent and well-governed, easing regulators’ concerns.
This is about mainstreaming Bitcoin and framing it as a pillar of global finance, rather than a speculative roller coaster.
Implications for the Bitcoin Industry
New Bar for Institutional Onramps
Twenty One will be a publicly traded “pure-play” Bitcoin business, possibly drawing pension funds, ETFs, and other traditional investors seeking BTC exposure with added potential upside from active treasury management.Competition with Existing Players
MicroStrategy (MSTR) has so far dominated the narrative of “corporate Bitcoin holdings.” Twenty One might offer a cleaner, more flexible structure for active BTC accumulation—potentially eating into MSTR’s valuation premium.Boosting Bitcoin’s Global Legitimacy
With SoftBank in the mix, the story shifts from “niche crypto” to “global financial strategy.” Expect more large corporates and institutions to take Bitcoin seriously, especially if Twenty One’s stock performs well.Synergy with Tether’s Bitcoin Mining
Tether’s rumored expansion into mining could mean Twenty One eventually secures its own Bitcoin supply chain, further solidifying the company’s BTC growth. This vertical integration would give it a unique advantage.Changing Media Narrative
Historically, media coverage around Bitcoin can be sensational. But with an SEC-regulated, publicly listedcompany rallying a star-studded cast, the conversation could evolve toward real-world uses, financial innovations, and policy implications rather than pure speculation.
Historical Context: From Crypto Fringe to Public Powerhouse
SPAC Evolution: Crypto SPACs had mixed success early in the 2020s, but Twenty One’s big capital raise suggests renewed appetite for Bitcoin.
Tether’s Growth: Once shadowed by questions about reserves, Tether is now an undisputed giant—diversifying from stablecoins into mining and public-equity ventures.
Jack Mallers’ Rise: Mallers embodies the new generation of Bitcoin builders, bridging the gap between open-source networks and big enterprise.
SoftBank’s Pivot: After dips into various crypto exchanges, SoftBank’s deeper push into Bitcoin signals a possible shift from “crypto for hype” to “Bitcoin as core.”
Twenty One is more than just another crypto SPAC. It’s a bold effort to reinvent how companies engage with Bitcoin, led by an industry icon, backed by one of the world’s biggest stablecoin issuers and one of the most influential tech investment groups on the planet. If successful, it could reshape the institutional and retail narrative around Bitcoin—transforming it from a volatile curiosity into a cornerstone asset for the next generation of finance.
For investors, Twenty One promises direct Bitcoin exposure plus potential upside from innovative financial products.
For crypto enthusiasts, it’s the ultimate signal that “Bitcoin-only” businesses can thrive and attract heavyweight backers.
For traditional finance, it’s yet another wake-up call that Bitcoin is no passing fad—major players are aligning to shape its future.
For Jack Mallers, it’s a high-stakes bet that his vision for Bitcoin can scale, with institutional and public market support, into something world-changing.
As global markets watch how Twenty One unfolds, its success or failure will echo throughout the Bitcoin ecosystem—possibly ushering in a new era where publicly traded companies don’t just hold BTC as a side bet but exist solely to expand and accelerate Bitcoin’s role in finance.
Conclusion
By merging Tether’s crypto heft, SoftBank’s global capital, Jack Mallers’ Bitcoin acumen, and Cantor Fitzgerald’s Wall Street expertise, Twenty One emerges as a “super-charged” Bitcoin powerhouse. If it thrives, it could:
Redefine Corporate Adoption: Making BTC a core asset, not an afterthought.
Challenge Incumbents: From MicroStrategy to traditional banks, forcing them to innovate or cede ground.
Shift Media Narratives: Toward infrastructure, solutions, and “building” rather than day-trading mania.
Open a Floodgate: For more public-market vehicles seeking a Bitcoin-centric business model.
The underlying message? Bitcoin has reached a new level of mainstream acceptance, with significant players willing to stake billions to push its adoption—and the outcome could shape finance for decades to come.
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Erasmus Cromwell Smith
April 24th 2025.
Disclosure: This article is for informational purposes only. It should not be considered financial or legal advice. Always do your own research before investing in digital assets.
Sources:
SEC Filing:
https://www.sec.gov/Archives/edgar/data/1865602/000121390025034375/ea023922201ex99-3_cantor.htm#:~:text=potentially%20compelling%20opportunity%20for%20value,One%20will%20be%20majority
TWENTY ONE PRESS RELEASE:
https://www.businesswire.com/news/home/20250423962305/en/Tether-SoftBank-Group-and-Jack-Mallers-Launch-Twenty-One-a-Bitcoin-native-Company-Through-a-Business-Combination-With-Cantor-Equity-Partners
IN-DEPTH “RESEARCH BRIEF” ABOUT TWENTY-ONE CAPITAL:
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