Tether, a renowned stablecoin issuer, has reportedly invested a whopping $458.7 million in Bitcoin on behalf of Twenty One Capital. The Bitcoin investment firm, which is currently waiting for the completion of a Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners, has received a substantial boost from this transaction.
As per a disclosure made by Cantor Equity Partners on May 13, Tether purchased 4,812.2 Bitcoin at $95,319 each, which were then transferred to an escrow wallet on May 9. This investment significantly increases the total Bitcoin holdings of Twenty One to 36,312 BTC. It’s worth noting that Cantor Equity Partners currently holds 31,500 BTC on behalf of the firm. Following the completion of the SPAC merger, the firm will trade under the ticker XXI.
Jack Mallers, CEO of Twenty One, confirmed on May 13 that the merger approval process is underway, although a precise timeline for the transaction’s completion was not provided. Data from BitcoinTreasuries.net reveals that Twenty One now ranks as the third largest corporate Bitcoin holder, trailing behind Strategy and Bitcoin mining firm MARA Holdings with Bitcoin holdings of 568,840 and 48,237 respectively.
Alongside Tether, crypto exchange Bitfinex also holds a majority stake in Twenty One, with Wall Street giant Cantor Fitzgerald sponsoring the merger. The latter is providing financial advisory services and has secured $585 million in funding to bolster Twenty One’s Bitcoin investments. Furthermore, Japanese firm SoftBank has invested $900 million into Twenty One, which is spearheaded by Strike CEO Jack Mallers.
In an April presentation to the SEC, Twenty One unveiled its ambition to supersede Michael Saylor’s Strategy (formerly MicroStrategy) and establish itself as the premier choice for investors seeking “capital-efficient Bitcoin exposure.” The firm promises to offer a “pure play” for investors desiring Bitcoin exposure, with Bitcoin-native operations and strategic capital raises. The firm’s success will be measured in terms of Bitcoin per share instead of traditional earnings per share, as it intends to prioritize Bitcoin acquisition over profit-making.
Twenty One aims to acquire 42,000 Bitcoin by the time of its launch. Previous filings indicate expected contributions of 23,950 Bitcoin from Tether, 10,500 Bitcoin from Softbank, and around 7,000 Bitcoin from Bitfinex. These will be converted into equity at $10 per share. Following the recent purchase, Cantor Equity Partners’ share price rose 5.2% in after-hours, according to Google Finance.
