Tether Invests $459M in Bitcoin for Twenty One Capital
Stablecoin issuer Tether recently acquired 4,812.2 Bitcoin (BTC) for $458.7 million, bolstering the holdings of Twenty One Capital, a Bitcoin investment firm in which Tether is a major stakeholder.
Strategic Investment and SPAC Merger
This purchase, made at an average price of $95,319 per BTC and transferred on May 9th, significantly increases Twenty One Capital's Bitcoin holdings. The transaction was disclosed in a May 13th filing with the U.S. Securities and Exchange Commission by Cantor Equity Partners, which is merging with Twenty One Capital via a Special Purpose Acquisition Company (SPAC) deal. Following the merger, Twenty One Capital will trade under the ticker symbol XXI.
This investment brings Twenty One Capital's total BTC holdings to 36,312 BTC, solidifying its position as a major corporate Bitcoin holder. Cantor Equity Partners currently holds 31,500 BTC on behalf of the firm.
Twenty One Capital's Ambitions
Twenty One Capital CEO Jack Mallers stated that the merger is under approval, though a timeline remains unclear. The firm aims to surpass MicroStrategy's Strategy as the leading vehicle for investors seeking Bitcoin exposure. Their approach focuses on Bitcoin as the primary metric for success, prioritizing Bitcoin acquisition over traditional profit measures.
Twenty One Capital anticipates reaching 42,000 BTC upon launch, with contributions expected from Tether (~24,000 BTC), SoftBank (10,500 BTC), and Bitfinex (~7,000 BTC, convertible into equity).
Market Impact and Future Outlook
The investment reflects Tether's continued commitment to Bitcoin and Twenty One Capital’s growth. Cantor Equity Partners' (CEP) stock price experienced volatility following the announcement. The impact of this significant investment on the Bitcoin market and Twenty One Capital's future performance will be closely observed. This deal highlights the growing institutional interest in Bitcoin as a strategic asset.
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