Tether has made a significant move in the crypto investment space by purchasing nearly half a billion dollars in Bitcoin for Twenty One Capital, a Bitcoin-focused firm gearing up for a public debut.
Massive Bitcoin Purchase Backs Public Listing Efforts
On May 9, Tether acquired 4,812.2 Bitcoin at an average price of $95,319 each, totaling around $458.7 million. The stablecoin issuer transferred the BTC to an escrow wallet, according to a May 13 filing with the U.S. Securities and Exchange Commission (SEC) by Cantor Equity Partners.
This purchase boosts Twenty One Capital’s total Bitcoin holdings to 36,312 BTC. Currently, Cantor Equity Partners holds 31,500 BTC for the firm, which plans to trade under the ticker symbol “XXI” once its merger is finalized.
Jack Mallers, CEO of Twenty One and also CEO of Strike, confirmed that the SPAC merger approval process is underway, though he did not provide a definitive timeline.
Positioning as a Top Bitcoin-Heavyweight
Twenty One is now the third-largest corporate holder of Bitcoin, trailing only behind Michael Saylor’s Strategy (formerly MicroStrategy) with 568,840 BTC and MARA Holdings with 48,237 BTC, based on data from BitcoinTreasuries.net.
Tether, along with crypto exchange Bitfinex, is a majority stakeholder in Twenty One. The upcoming merger is being backed by Cantor Fitzgerald, a Wall Street powerhouse, which is also securing $585 million in funding for Bitcoin purchases.
Additionally, SoftBank has poured $900 million into the firm, reinforcing Twenty One’s capital strength and strategic ambitions.
Twenty One’s Vision: A Bitcoin-Native Investment Vehicle
In an April presentation to the SEC, Twenty One outlined its mission to surpass Strategy as the go-to investment option for Bitcoin exposure. The firm intends to be a “pure play” for Bitcoin, emphasizing native operations and flexibility in raising strategic capital.
Rather than focusing on traditional metrics like earnings per share, Twenty One will prioritize Bitcoin per share as its core performance indicator. The company aims to accumulate 42,000 BTC before it officially launches.
The breakdown of this target includes:
- 23,950 BTC from Tether
- 10,500 BTC from SoftBank
- 7,000 BTC from Bitfinex (to be converted into equity at $10 per share)
Following the announcement, Cantor Equity Partners’ stock price surged from $10.65 to $59.73 on May 2 before dipping back to $29.84. The latest Bitcoin acquisition prompted another 5.2% rise in after-hours trading.
As Twenty One Capital inches closer to its launch, it’s positioning itself not only as a major Bitcoin holder but also as a compelling alternative for investors looking for streamlined and capital-efficient exposure to the leading cryptocurrency.
