Tether Acquires $458.7 Million in Bitcoin for Twenty One Capital Ahead of SPAC Merger
Tether, the issuer behind the leading stablecoin USDT, has acquired $458.7 million worth of Bitcoin on behalf of Twenty One Capital, a Bitcoin-focused investment firm it financially supports. The firm is currently awaiting the completion of its Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners.
According to a filing submitted by Cantor Equity Partners to the U.S. Securities and Exchange Commission (SEC) on May 13, Tether purchased 4,812.2 BTC at an average price of $95,319 per Bitcoin. These assets were transferred to an escrow wallet on May 9 as part of a strategic move to bolster Twenty One Capital’s holdings and long-term investment structure.
This transaction boosts Twenty One Capital’s total Bitcoin holdings to 36,312 BTC, with Cantor Equity Partners currently holding 31,500 BTC on the firm’s behalf. Upon completion of the SPAC merger, the company will begin trading under the ticker symbol XXI.
Jack Mallers, CEO of Twenty One Capital and founder of Strike, confirmed that the merger process is in progress, although a definitive completion date has not yet been announced. Despite the uncertainty, the firm’s ambitions remain crystal clear.
According to data from BitcoinTreasuries.net, Twenty One Capital has now positioned itself as the third-largest corporate Bitcoin holder—behind only Strategy (formerly MicroStrategy) and MARA Holdings, which hold approximately 568,840 BTC and 48,237 BTC respectively.
Tether holds a majority stake in Twenty One Capital alongside crypto exchange Bitfinex. The SPAC merger is being sponsored by Wall Street powerhouse Cantor Fitzgerald, which is providing financial advisory services and has secured $585 million in funding to support the firm’s aggressive Bitcoin acquisition strategy.
In addition to Tether’s support, Japanese conglomerate SoftBank has invested $900 million in Twenty One Capital, further cementing confidence in the firm’s vision and leadership under Mallers.
Twenty One Capital Eyes Strategy’s Crown in Bitcoin Exposure
In an April presentation to the SEC, Twenty One Capital outlined its ambition to become the premier vehicle for capital-efficient Bitcoin exposure, aiming to eventually eclipse Michael Saylor’s Strategy in the institutional Bitcoin investment space.
Unlike many traditional investment firms, Twenty One aims to be a “pure play” Bitcoin entity, focusing on Bitcoin-native operations. The company intends to offer investors direct exposure to Bitcoin with greater operational flexibility and more frequent strategic capital raises.
A major distinction from conventional investment strategies is the firm’s decision to measure success not by earnings per share (EPS) but by Bitcoin per share (BPS). The firm has made it clear that accumulating Bitcoin will take precedence over short-term profits, reflecting its long-term commitment to Bitcoin as a strategic reserve asset.
Twenty One Capital has set a target to hold 42,000 BTC at launch. Earlier filings show that this total will comprise approximately 23,950 BTC from Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex—the latter of which will be converted into equity at $10 per share.
Market Responds to Bitcoin Purchase
Cantor Equity Partners’ share price reacted positively to the Bitcoin acquisition. On May 2, the stock surged from $10.65 to $59.73, though it later corrected to $29.84, according to Google Finance. Following the latest announcement, the stock experienced a further 5.2% increase in after-hours trading, signaling growing investor interest in the Bitcoin-driven strategy.
