Tether-backed Twenty One Capital Buys $458.7 Million in Bitcoin

Highlights:

• Twenty One Capital has purchased 4,812 BTC worth $458.7 million as part of a business deal with Cantor Equity Partners.
• Tether’s PIPE financing supports the merger.
• Twenty One holds 36,312 BTC and plans to increase this to 42K BTC.

As per a May 13 filing with the United States Securities and Exchange Commission (SEC), Tether-supported Bitcoin (BTC) investment firm Twenty One Capital has acquired 4,812 BTC valued at $458.7 million. The purchase was made at an average price of $95,319.83 per BTC and is part of a strategic deal with Cantor Equity Partners, a special-purpose acquisition company (SPAC) backed by Cantor Fitzgerald.

In simple terms, Twenty One is merging with Cantor Equity Partners. The merger helps Twenty One become a publicly traded company, allowing it to sell shares on the stock market. To support this merger, Tether agreed to invest through PIPE (Private Investment in Public Equity) financing.

As part of its investment, Tether purchased Bitcoin and stored it in an escrow wallet on May 9. After the merger, Tether will transfer the BTC to Twenty One, as per the filling. After the merge, the company will trade under the ticker XXI, instead of its current CEP ticker. 

Twenty One’s CEO, Jack Mallers mentioned on May 13 that they are already in the approval process for the merger. However, he did not provide an exact timeline for completing the transaction.

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Twenty One Capital’s Strategic Partnerships

Tether and its affiliate, Bitfinex, hold the majority stake in Twenty One Capital. SoftBank, a Japanese investment firm, has invested $900 million and owns a minority share in the company. Cantor Fitzgerald is the sponsor and advisor for the merger, having raised $585 million to support future Bitcoin acquisitions.

Mallers, creator of the Bitcoin payment app Strike, follows a Bitcoin-focused approach, drawing parallels to Michael Saylor’s Strategy. In an April SEC presentation, Twenty One expressed its goal of surpassing Strategy to become the leading platform for capital-efficient Bitcoin investment. The company plans to offer a “pure play” for Bitcoin investors, with Bitcoin-native operations and more flexibility for raising capital.

Twenty One Capital’s latest Bitcoin purchase aligns with the rise in Bitcoin’s price, which has reached approximately $103,500. Michaël van de Poppe said CPI data showed lower inflation. He believes this could help crypto rise toward a new.

Twenty One Capital Becomes a Major Player in Corporate Bitcoin Holdings

Following its latest acquisition, the company now owns 36,312 BTC. According to the filing, Cantor Equity Partners holds 31,500 BTC on behalf of the company. Based on data from BitcoinTreasuries.net, Twenty One Capital is the third-largest corporate holder of Bitcoin globally. It ranks behind Strategy, which holds 568,840 BTC, and MARA Holdings, which owns 48,237 BTC.

The company aims to accumulate a total of 42,000 BTC by the time it goes public, as outlined in its filings. Tether will contribute 23,950 BTC, Bitfinex will add 7,000 BTC, and SoftBank will provide 10,500 BTC. They will turn these amounts into shares at a price of $10 each.