Day: April 23, 2025

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A bold new chapter in institutional crypto investment has begun. Cantor Fitzgerald, a titan of Wall Street, is joining forces with Tether and Japanese tech conglomerate SoftBank Group (TYO:9984) to launch a $3.6 billion crypto venture — a move that underscores the accelerating mainstream adoption of Bitcoin and digital assets.

The new venture, named Twenty One Capital, will be listed on the Nasdaq under the ticker (NASDAQ:XXI). It’s poised to become the third-largest corporate holder of Bitcoin globally, with more than 42,000 BTC already committed at launch.

Institutional Crypto Investment Hits a Milestone

For years, crypto has lived on the edge of the financial system — alternately embraced and dismissed. But this new venture suggests the tide is turning decisively in favor of institutional crypto investment.

Cantor Fitzgerald’s involvement, particularly through its special-purpose acquisition company (SPAC), Cantor Equity Partners (NASDAQ:CEP.O), signals strong Wall Street confidence in Bitcoin’s long-term value. And the collaboration with Tether — the issuer of the world’s largest stablecoin — along with SoftBank’s minority investment, creates a powerful alliance aimed at reshaping the crypto investing landscape.

Twenty One’s CEO, Jack Mallers, put it simply: “We’re not here to beat the market. We’re here to build a new one.”

A Strategic Bitcoin Treasury

Unlike many firms that cautiously add digital assets to their balance sheets, Twenty One Capital is going all in. With more than $1.6 billion in Bitcoin contributed by Tether alone, plus additional contributions from Bitfinex ($600 million) and SoftBank ($900 million), the venture is taking a page out of the playbook used by MicroStrategy (NASDAQ:MSTR).

MicroStrategy currently holds over 538,000 Bitcoin and saw its valuation surge in 2024 as institutional demand for crypto soared, especially following pro-crypto political rhetoric during the U.S. presidential election. Similarly, Twenty One Capital appears set to position itself as a vehicle for Bitcoin-centric growth — both as a hedge against economic uncertainty and a foundation for new financial infrastructure.

Bitcoin, now trading above $94,000, has climbed over 40% in the past six months. While retail investors have driven much of the past decade’s momentum, the current rally is being led by institutions, analysts say.

Matt Mena, a strategist at crypto investment firm 21Shares, explains: “What sets this rally apart is the growing conviction around Bitcoin’s function as a macro hedge. More investors are turning to it not just as a speculative asset, but also as a flight to safety amid rising uncertainty across traditional markets.”

This narrative plays directly into the goals of Cantor’s new venture. With macroeconomic concerns like inflation, geopolitical instability, and fiat currency devaluation lingering, institutional crypto investment is no longer just an alternative — it’s becoming a necessity.

The Tether-Cantor Nexus

The deal also sheds light on the long-standing relationship between Cantor Fitzgerald and Tether. According to Tether CEO Paolo Ardoino, 99% of Tether’s U.S. Treasury bill reserves — used to back its USDT stablecoin — are held with Cantor. That deep trust is now being extended to this ambitious new venture.

“Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant assets,” Ardoino said. “Its role as the foundation of a new financial system is inevitable.”

The formation of Twenty One Capital could very well mark the beginning of that new financial system — one led not just by tech visionaries, but by established financial powerhouses embracing institutional crypto investment on a global scale.

Final Thoughts

Twenty One Capital is more than just a bold bet on Bitcoin — it’s a clear sign that institutional crypto investment is entering a new phase. With the backing of Cantor Fitzgerald, Tether, Bitfinex, and SoftBank, the venture is uniquely positioned to redefine how traditional finance approaches crypto.

If successful, it won’t just be another crypto company on the Nasdaq — it will be a blueprint for future digital asset investment at scale.

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This post was originally published on this site

As digital assets go mainstream, crypto tax mistakes are becoming more common—and more costly. With increased scrutiny from the IRS and local tax authorities, 2025 is shaping up to be a year when crypto investors can’t afford to be sloppy with their filings.

Whether you’re holding Bitcoin, trading meme coins, or staking Ethereum, your tax obligations are real. Here are three of the most common crypto tax mistakes to avoid if you want to stay compliant and keep Uncle Sam happy.

1. Ignoring State-Level Crypto Tax Rules

The IRS isn’t the only one watching your crypto wallet. Many investors make the mistake of assuming that paying federal crypto taxes is enough. Unfortunately, crypto tax mistakes often begin with overlooking state-level obligations.

Tax rules for cryptocurrencies vary significantly from one state to another. For example, New York, California, and even some local jurisdictions have introduced specific reporting requirements or capital gains treatments for crypto earnings. If you’re filing your taxes thinking it’s a federal-only concern, think again.

Failing to report income or capital gains at the state level can trigger audits or penalties, even if your federal filings are perfect. Always check your local tax laws or consult a professional familiar with cryptocurrency taxation in your jurisdiction.

2. Miscalculating Capital Gains on Crypto

Of all crypto tax mistakes, this one causes the most confusion—and it can hit your wallet hard. Calculating capital gains on crypto isn’t as simple as subtracting the buy price from the sell price. There’s a lot more to track:

• Incorrect acquisition dates: If you confuse the date of a crypto transfer with its original purchase date, your gains or losses may be misreported. 
• Improper lot accounting: You can’t just lump all your Bitcoin (CRYPTO:BTC) together. You must identify which specific coins were sold, especially if you acquired them at different times and prices. 
• Omitting transaction fees: When calculating cost basis, always include the fees paid when buying or selling crypto. Otherwise, your profit (and tax owed) could be overstated. 
• Forgetting forks and airdrops: Any free coins received from forks or airdrops have a cost basis too, often based on fair market value at the time you received them. 

Miscalculating capital gains could lead to either overpaying or underpaying your taxes. Either way, it’s a costly mistake you don’t want to make.

3. Failing To Report All Taxable Events

This is the most common and the most serious of all crypto tax mistakes. Many investors believe that only converting crypto to fiat (e.g., U.S. dollars) is taxable. But that’s far from the full picture.

Here are just some of the events that the IRS considers taxable:

• Trading one cryptocurrency for another: Swapping Ethereum (CRYPTO:ETH) for Solana (CRYPTO:SOL)? That’s a taxable event. 
• Spending crypto: Buying a latte or a Lamborghini with Bitcoin? That’s taxable too. 
• Receiving crypto as income: Whether you’re a freelancer paid in Dogecoin or getting a salary in USDC, it’s income—and must be reported. 
• Mining and staking rewards: Mined coins or staking rewards are considered taxable income at the time you receive them, based on market value. 

Even if you didn’t receive fiat currency, the IRS still considers these events taxable. Failing to report them can result in significant penalties or even an audit.

Final Thoughts: Be Proactive, Not Reactive

The IRS and state tax agencies are getting smarter at tracking digital asset activity. As exchanges implement stricter reporting requirements and blockchain analytics improve, your chances of flying under the radar are slim.

To stay ahead, avoid these three crypto tax mistakes: know your local tax laws, get your capital gains math right, and report every taxable event. If you’re unsure, now’s the time to work with a tax professional experienced in crypto.

Don’t wait for a tax notice or penalty letter to remind you—get proactive with your crypto tax strategy in 2025.

Featured Image:  Freepik © ruslan_ivantsov

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