Tether increased its Bitcoin holdings in Twenty One Capital by 4,812 Bitcoin, which is currently traded under Cantor Equity Partners until the two companies complete their merger.
Stablecoin issuer Tether purchased $458.7 million worth of Bitcoin for its supported Bitcoin investment company, Twenty One Capital, which is awaiting completion of a special purpose acquisition company (SPAC) merger with Cantor Equity Partners.
Tether purchased 4,812.2 Bitcoin. Cantor Equity Partners disclosed in a filing submitted to the U.S. Securities and Exchange Commission on May 13 that the company sold these bonds at a price of $95,319 per share and transferred them to a custody wallet on May 9.
This brings the total Bitcoin holdings of Twenty One to 36,312 BTC, of which Cantor Equity Partners holds 31,500 BTC on behalf of the company, and once the SPAC merger is completed, the company will trade under the ticker symbol XXI.
Jack Mallers, CEO of Twenty One, stated on May 13 that they have entered the merger approval process but did not provide a specific estimate for when the transaction would be completed.
Data from BitcoinTreasuries.net shows that Twenty One is already the third largest corporate holder of Bitcoin, behind Strategy and Bitcoin mining company MARA Holdings, which hold 568,840 Bitcoin and 48,237 Bitcoin, respectively.
Tether jointly holds a majority stake in Twenty One with cryptocurrency exchange Bitfinex. Wall Street giant Cantor Fitzgerald is responsible for the merger, providing financial advisory services and raising $585 million to support Twenty One's Bitcoin investments.
Japanese investment holding company SoftBank also invested $900 million in Twenty One, led by Strike CEO Jack Mallers.
Strategy may have a legitimate competitor.
In a report submitted to the U.S. Securities and Exchange Commission (SEC) in April, Twenty One stated that the company is seeking to replace Strategy (formerly MicroStrategy), founded by Michael Saylor, to become a 'superior investment vehicle' for investors seeking 'capital-efficient Bitcoin investment.'
The company is one of many Bitcoin purchasing companies, but it promises to provide 'pure investments' for investors seeking Bitcoin investments, offering Bitcoin-native operations and greater strategic financing flexibility.
Twenty One stated that its key success metric would be Bitcoin per share, rather than the traditional earnings per share metric, as it will prioritize purchasing Bitcoin over profitability.
Twenty One aims to reach 42,000 Bitcoin at launch. Previous documents indicated that 23,950 Bitcoin are expected to come from Tether, 10,500 Bitcoin from SoftBank, and about 7,000 Bitcoin from Bitfinex, which will convert to equity at a price of $10 per share.
Google Finance data shows that the stock price of Cantor Equity Partners (CEP) soared from $10.65 to $59.73 on May 2, but has since fallen back to $29.84. After a recent acquisition, CEP rose again by 5.2% in after-hours trading.
