In a significant development for the cryptocurrency investment landscape, Bitcoin BTC treasury firm Twenty One has successfully raised an additional $100 million through convertible senior secured notes. This latest funding round pushes the firm’s total capital raised to an impressive $685 million, as it moves forward with plans for a merger with Nasdaq-listed Cantor Equity Partners (CEP). This information was disclosed in a recent filing with the U.S. Securities and Exchange Commission.
The newfound financing predominantly comes from existing investors and sponsors who opted to exercise their rights to purchase additional notes, which were initially offered during the fundraising round in April, as stated in the regulatory filing.
The newly issued notes are carrying a modest 1% coupon and are scheduled to mature in 2030. The recent $100 million infusion complements the original $385 million and brings the total financing from these notes to $485 million. Furthermore, this is in addition to $200 million in private investment in public equity (PIPE) that was announced in the previous month.
As of the latest trading session, Cantor Equity Partners’ stock is down by 1.5% amid a decline in Bitcoin prices, which have dipped below $107,000.
Twenty One represents a growing trend of firms adopting a cryptocurrency treasury strategy, which has garnered attention recently. The firm is being spearheaded by Brandon Lutnick, the son of U.S. Commerce Secretary and former Cantor Fitzgerald chairman Howard Lutnick, through a special-purpose acquisition company (SPAC) structure with Cantor Equity Partners. The ownership roster includes iFinex, the parent organization of Bitfinex, and Tether, the issuer behind the substantial $150 billion USDT. Additionally, the leadership of the company is expected to include the notable Jack Mallers, CEO of Strike.
Earlier this month, Twenty One made headlines by disclosing a substantial BTC acquisition worth $458 million, further solidifying its position in the cryptocurrency market.