The return of President Donald Trump to the White House has triggered a surge in cryptocurrency deal-making, as companies rush to seize opportunities created by lighter U.S. regulation and a renewed wave of mainstream interest.
This week, the launch of Twenty One Capital marked a significant milestone, as the new bitcoin-focused firm announced plans to go public through a $3.6 billion merger with a special-purpose acquisition company led by Brandon Lutnick, son of Commerce Secretary and close Trump ally Howard Lutnick.
Supported by major players such as Tether and Japan’s SoftBank Group, Twenty One Capital aims to accumulate billions of dollars’ worth of bitcoin and issue debt to acquire even more—an aggressive strategy first popularized by MicroStrategy, the software firm turned bitcoin investor.
The Twenty One merger represents the third crypto deal valued above $1 billion announced in less than two months, even as broader deal-making slows under market volatility sparked by Trump’s new tariffs and uncertainty surrounding the administration’s antitrust policies.
Earlier in April, Ripple revealed a $1.25 billion agreement to acquire prime broker Hidden Road, betting that institutional investors would seek greater exposure to crypto. In March, digital currency exchange Kraken announced a $1.5 billion acquisition of futures broker NinjaTrader, one of the largest mergers between crypto and traditional trading platforms to date.
Meanwhile, Galaxy Digital is preparing for a mid-May direct listing on Nasdaq after the Securities and Exchange Commission granted long-awaited approval. Already listed on the Toronto Stock Exchange, Galaxy Digital will retain its Canadian listing alongside its U.S. debut.
Crypto deal-making has accelerated sharply in 2025, with 88 transactions totaling $8.2 billion so far this year, nearly triple the transaction value of all 188 crypto deals recorded in 2024, according to advisory firm Architect Partners.
“There’s optimism that finally things changed,” said Eric Risley, founder of Architect Partners. “The traditional crypto players that are large and at scale are now back in a growth-minded mode, and one of the tools that they have for growth is acquisitions.”
This momentum has fueled speculation that the industry could surpass the record set in 2021, when a crypto bull market propelled $17 billion in deals.
Following the collapse of FTX and subsequent regulatory crackdown two years ago, crypto deal-making had plunged. But Trump’s return, coupled with appointments of crypto-friendly regulators and a Republican-led Congress pushing for clearer digital asset regulations, has reignited optimism.
“It’s been a much more positive atmosphere from a digital-asset dealmaking perspective than any time before,” said Alexander Yavorsky, co-head of investment banking for global financial institutions at Jefferies.
Ryne Miller, co-chair of the crypto practice at law firm Lowenstein Sandler, added that more mergers between traditional financial firms and crypto companies are expected. “There is a genuine interest in the market in taking advantage of this regulatory moment,” he said.
The spotlight now falls on Twenty One Capital’s bold strategy. Backed by Tether, Bitfinex, and SoftBank, the company plans to debut with $4 billion worth of bitcoin and aims to raise an additional $585 million to purchase more.
This mirrors MicroStrategy’s bitcoin treasury approach, which saw the firm amass over $50 billion worth of the cryptocurrency. Some observers believe Twenty One could emerge as a serious competitor to MicroStrategy, thanks to its heavyweight financial support.
Investor enthusiasm was evident as shares of Cantor Equity Partners, the SPAC facilitating Twenty One’s public debut, nearly tripled following the announcement.
Still, seasoned Wall Street analysts caution that a strategy focused solely on bitcoin accumulation carries considerable risk. MicroStrategy recently posted a $5.91 billion loss for the March quarter due to a bitcoin price slump, while Tesla reported a $125 million mark-to-market loss on its own bitcoin holdings.
Despite the risks, the Trump-era regulatory landscape has set the stage for an unprecedented wave of crypto expansion—and Wall Street is already racing to capitalize.
