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Tether purchased $459 million in Bitcoin to fund the new BTC Treasury company
The publicly traded Bitcoin company Twenty One, which will be launched through a planned merger, already has an accumulated stockpile of Bitcoin - thanks to Tether.
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Twenty One, a new publicly traded Bitcoin company that will be listed on NASDAQ through a planned SPAC merger with Cantor Equity Partners, already has nearly $459 million worth of Bitcoin waiting in its treasury thanks to a purchase made by the stablecoin giant Tether.
In a filing with the Securities and Exchange Commission on Tuesday, Cantor Equity Partners revealed that Tether, one of the companies involved in founding Twenty One, purchased 4,812.22 Bitcoin at an average price of $95,319.83 per coin, bringing the total value of Bitcoin to $458.7 million. The cryptocurrency will be sold to Twenty One after the merger is completed, at the same purchase price.
The 'Twenty One' platform, formed in collaboration between Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group, plans to launch with a capital exceeding 42,000 Bitcoin, equivalent to approximately $4.4 billion at current prices. This merger and planned collaboration was announced in April.
Image created by Decrypt using artificial intelligence.
Tether, Bitfinex, Cantor, and SoftBank are preparing to launch a Bitcoin company with a capital of $3.9 billion
In an alliance involving cryptocurrency and traditional finance giants, Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group announced on Wednesday their collaboration to launch Twenty One, a public company focused on Bitcoin, planning to launch with over 42,000 Bitcoin, equivalent to about $3.9 billion. Tether and Bitfinex will be the main owners, while SoftBank's investment holding company will hold a minority stake. Twenty One will be launched through a planned merger with Cantor Equity Partners, which...
The purchase comes as the price of Bitcoin rose on Tuesday to over $104,000 - just 4% lower than the token's all-time high of $108,786 - following news on Monday that the U.S. and China would be easing a series of tariffs that had led to market declines just a few weeks prior.
These indicators, along with other indicators of Bitcoin's continued resilience amid tough market conditions, have prompted several companies to hold strategic reserves of this currency. The software company 'Strategic', owned by Michael Saylor, has accumulated nearly $60 billion worth of Bitcoin over the past few years, while companies 'Simler Scientific', 'Metaplanet', and 'Marathon Digital' have adopted similar strategies.
The Bitcoin purchase also comes shortly after Tether reported over a billion dollars in revenue in the first quarter, leaving it with plenty of cash to deploy in financing its various businesses.
In addition to holding Bitcoin, Twenty One plans to launch Bitcoin lending services alongside other financial products. The planned company will be majority-owned by Tether and Bitfinex, while SoftBank will hold a minority stake.
Under the supervision of incoming CEO Jack Mallers, who also runs the Bitcoin payment company Strike, Twenty One aims to raise nearly $600 million, with $385 million from the sale of convertible bonds and $200 million through private equity investments.
The funds raised by the company will be allocated to purchase more Bitcoin and for general corporate purposes. Its shares will be listed under the symbol XXI, upon completion of the merger.
