Tether Invests $459M in Bitcoin to Boost Twenty One Capital's Holdings

Tether, the company behind the USDT stablecoin, has made a substantial investment in the cryptocurrency market by purchasing 4,812 Bitcoin worth approximately $459 million. This acquisition was made to support Twenty One Capital, a Bitcoin investment firm that is in the process of merging with Cantor Equity Partners through a Special Purpose Acquisition Company (SPAC) deal. The Bitcoins were acquired at an average price of $95,319 and are currently held in an escrow wallet, as disclosed in a U.S. Securities and Exchange Commission (SEC) filing.

With this acquisition, Twenty One Capital's total Bitcoin holdings have increased to 36,312 BTC, positioning it as one of the largest corporate holders of Bitcoin globally. This move is seen as a strategic play to challenge the dominance of other major Bitcoin holders. Once the SPAC merger is complete, Twenty One Capital will trade publicly under the ticker symbol “XXI.”

The merger with Cantor Equity Partners, led by Brandon Lutnick, includes $385 million in convertible senior secured notes and $200 million in common equity financing. The company plans to use these funds to purchase more Bitcoins and may attract another $100 million through convertible notes within 30 days after the first transaction. The firm aims to hold over 42,000 Bitcoin at launch, making it one of the largest corporate Bitcoin holders globally. The firm will trade on Nasdaq with the ticker “XXI” after it completes the merger.

Tether, Bitfinex, and SoftBank Group are the operators of the venture; yet, Tether and iFinex hold the biggest share of ownership in the project. SoftBank owns a sizable minority stake in Twenty One Capital, even though Jack Mallers is the company’s CEO. Twenty One Capital wants to connect the world of traditional finance and the world of cryptocurrency by providing public-market exposure to Bitcoin. The firm intends to offer Bitcoin-native services such as lending and reserves management to institutional investors who want to get exposure to crypto but without direct exchange participation.

By taking this action, Tether is demonstrating its growing interest in integrating Bitcoin. The company has taken a position to help traditional investors, using the listing to increase Bitcoin’s presence in institutions. The enormity of the enterprise, on the other hand, raises questions about the regulatory monitoring and transparency that will be implemented because of the history of Tether and the complexities of the public Bitcoin treasury.