According to a securities filing on Tuesday, the newly launched investment company by Jack Mallers, Twenty One Capital, purchased 4,812 Bitcoin (BTC) worth $458.7 million.
Backed by Tether, Cantor Fitzgerald, and SoftBank, the SPAC-born company points to a new phase of Bitcoin accumulation for corporations.
Purchase of 4,812 BTC from Twenty One Capital
This deal represents the company's first major Bitcoin acquisition since its establishment in late April. It indicates the beginning of an aggressive BTC accumulation movement designed in the style of Michael Saylor's strategy.
The Bitcoin allocation, termed "Initial PIPE Bitcoin," was initially acquired by Tether, a USDT issuing company. The stablecoin issuer and main stakeholder in Twenty One Capital organized the deal as part of a public equity private investment transaction (PIPE) using the total proceeds from the convertible bonds.
After the business merger that led to the creation of the publicly listed entity, Tether transferred BTC currency to Twenty One Capital for $458.7 million.
The company, whose shares are traded under the ticker CEP, now holds an astonishing amount of $4.05 billion in Bitcoin. This makes it the third largest bondholder after Strategy and Marathon Digital.
During its establishment, they funded their treasury with $3.6 billion in BTC through a SPAC merger with Cantor Equity Partners.
Led by Jack Mallers, founder of the Bitcoin payment app Strike, the company is primarily owned by Tether and Bitfinex. SoftBank holds a minority stake.
The agreement reflects a growing movement among companies to adopt the original Bitcoin balance sheet. They are using it as a hedge against the depreciation of fiat currency and central risks.
Max Kaiser, a Bitcoin pioneer, coined this strategy as "Saylorization." It is named after Michael Saylor, whose company MicroStrategy (now Strategy) has been a leader in corporate Bitcoin purchases since 2020.
El Salvador is also adopting a Bitcoin bond mechanism. Notably, Metaplanet recently surpassed El Salvador by purchasing $126.7 million in BTC the day before the mentioned bond issuance.
Kaiser recently predicted that companies adopting this strategy could help push the value of Bitcoin to $2.2 million. He also pointed out that the strong Bitcoin advocate and advisor from El Salvador indicated that the rise of SPAC-led entities like Twenty One Capital could accelerate this timeline.
Unlike traditional tech companies that keep BTC on the sidelines, Twenty One Capital is designed to be integral to Bitcoin at its core. This includes using equity and convertible debt as vehicles to acquire more BTC.
The strategy reflects a broader shift where companies are no longer "intervening" in the cryptocurrency space. Instead, they are betting their business models on it.
This move also increases competition with entities like Metaplanet, which calls itself the "Asian MicroStrategy" in Japan. BeInCrypto reported that the company recently ramped up its BTC purchases through bond offerings.
The alliance of Twenty One Capital with major companies like Tether, Bitfinex, and Cantor Fitzgerald gives it a unique advantage in terms of liquidity, market access, and global infrastructure. This recent purchase goes beyond the traditional strategy; 21 Capital challenges it.
