Times may feel a bit febrile, but at least we’re getting some wonderful structural diagrams.
From MainFT’s Antoine Gara and Oliver Barnes yesterday:
Brandon Lutnick, son of US commerce secretary Howard Lutnick, is partnering with SoftBank, Tether and Bitfinex on a bitcoin acquisition vehicle to capitalise on a cryptocurrency revival under US President Donald Trump.
The consortium announced on Wednesday that it was creating a multibillion-dollar bitcoin acquisition vehicle called Twenty One Capital that will absorb billions in cryptocurrency from the other partners with the aim of buying up more bitcoin…
It will be formed from a reverse merger with the younger Lutnick’s special purpose acquisition vehicle — Cantor Equity Partners, which raised $100mn last year — with the aim of finding a target company.
With the transaction closed, Twenty One is majority owned by Tether, with — in case this deal didn’t already have more red flags than China National Day — 24 per cent ownership by SoftBank, bought via a bitcoin contribution made by Tether on SoftBank’s behalf. Add in more bitcoin bought by a convertible bond issuance and equity placement, and the company gets to launch with 42,000 bitcoin.