Tether Invests $458.7M in Bitcoin for Twenty One Capital's Public Listing

Tether, a prominent player in the cryptocurrency space, has made a substantial investment by adding 4,812 Bitcoin to the treasury of Twenty One Capital. This acquisition, valued at approximately $458.7 million, was executed at an average price of $95,319 per Bitcoin. The move positions Twenty One Capital as one of the largest corporate holders of Bitcoin, with a total of 36,312 BTC in its treasury.

The Bitcoin was transferred to a designated escrow wallet on May 9, as disclosed in a May 13 filing with the U.S. Securities and Exchange Commission. This strategic investment is part of Twenty One Capital's preparation for its upcoming public listing. The company plans to transfer over 42,000 BTC, valued around $4.4 billion, to its new venture, further solidifying its position in the Bitcoin market.

Tether's investment in Twenty One Capital underscores its commitment to Bitcoin and its role in the broader cryptocurrency ecosystem. By backing Twenty One Capital, Tether is not only diversifying its holdings but also supporting a company that shares its vision for a Bitcoin-centric future. This move is likely to have implications for the broader cryptocurrency market, as it signals confidence in Bitcoin's long-term value and potential for growth.

The investment also highlights the growing trend of corporations adding Bitcoin to their treasuries. As more companies recognize the value of Bitcoin as a store of value and a hedge against inflation, we can expect to see further adoption and integration of Bitcoin into traditional financial systems. This trend is likely to continue as more companies follow the lead of Twenty One Capital and Tether, further legitimizing Bitcoin as a mainstream asset.

Twenty One Capital, co-founded by Tether, crypto exchange Bitfinex, and Japanese tech giant SoftBank, aims to create a Bitcoin-native public firm focused on long-term BTC accumulation and institutional access. The company's CEO, Paolo Ardoino, views this venture as a long-term bet on Bitcoin’s institutional relevance and value proposition. Ardoino emphasized that Twenty One Capital will prioritize accumulation over speculation, aligning with Tether's vision of building long-term value for those who understand what Bitcoin represents.

The merger, facilitated through Cantor Equity Partners, a Cayman Islands-based SPAC, will list Twenty One Capital under the ticker “XXI” on public markets. Cantor Fitzgerald is also providing advisory services and securing additional capital to support the company’s Bitcoin-focused strategy. Earlier filings disclosed that the company plans to debut with at least 42,000 Bitcoin in assets, with Tether providing 23,950 BTC, SoftBank 10,500 BTC, and Bitfinex around 7,000 BTC, all of which will be converted into shares priced at $10 each.

Twenty One Capital has positioned itself as a future competitor to Strategy, stating its goal is to become the “superior vehicle” for capital-efficient Bitcoin exposure. The company will prioritize “Bitcoin per share” as its key success indicator. At the helm of this initiative is Strike founder Jack Mallers, who was appointed CEO of Twenty One Capital in April. Mallers, known for his vocal support of Bitcoin and his work on Lightning-based payments, described the new company as a stock “built by Bitcoiners, for Bitcoiners.”

Mallers has outlined ambitious plans for Twenty One Capital to roll out Bitcoin-native financial products, including lending tools and capital market offerings. “Our mission is simple: to become the most successful company in Bitcoin,” Mallers said at the time. This strategic move by Tether and Twenty One Capital is set to reshape the landscape of corporate Bitcoin holdings and further cement Bitcoin's role in the financial ecosystem.