Tether and Bitfinex Transfer $3.9 Billion in Bitcoin to Twenty One Capital

In a significant move within the cryptocurrency landscape, Tether and its sister firm Bitfinex transferred 37,229 BTC, valued at $3.9 billion, to Twenty One Capital. This transaction catapulted Twenty One Capital to the third-largest corporate holder of Bitcoin globally, trailing only Strategy and MARA Holdings. The transfer was confirmed by Tether’s CEO Paolo Ardoino, who documented the flow on-chain. Some of the Bitcoin was allocated to SoftBank’s investment in the venture, while the rest supported convertible equity agreements.

Twenty One Capital, led by Strike founder Jack Mallers, is not merely another crypto company. Its ambition is to rebuild capital markets infrastructure entirely on Bitcoin rails. This includes lending, custody, and asset issuance, all native to Bitcoin. With $3.9 billion in backing and a planned SPAC merger with Cantor Fitzgerald’s Cantor Equity Partners, the company is already valued at $3.6 billion before any of its products go mainstream.

This move signifies more than just an institutional investment in Bitcoin as an asset. Tether and Bitfinex are backing a future where Bitcoin becomes the infrastructure for financial markets. This shift away from proof-of-stake chains and hybrid models toward pure Bitcoin rails suggests that major crypto players are moving their money away from speculative tokens and into building real financial systems directly on Bitcoin.

While Strategy’s Michael Saylor has expressed concerns about on-chain proof-of-reserves due to security risks, Mallers and his team are moving billions in full view. Transparency is not optional but the foundation of their approach. This move positions Twenty One Capital as the institutional layer that Bitcoin has long lacked, challenging the notion that serious financial infrastructure cannot be built on Bitcoin. It also declares that Bitcoin is not just a store of value but the backbone of the next financial system.

This development sets up a philosophical showdown. While some players hoard BTC and keep their moves private, Mallers is building a fortress in the open. The capital is public, the intent is aggressive, and the message is clear: Bitcoin doesn’t need Wall Street’s blessing. It needs builders who speak its language. This move by Tether and Bitfinex underscores the growing confidence in Bitcoin as a foundational technology for the future of finance.