Tether acquires $459M Bitcoin for 21 Capital Treasury

Tether, a major stablecoin issuer, and Jack Mallers’ newly launched Bitcoin treasury firm have collectively purchased over 4,800 BTC for their joint initiative.

A recent filing with the U.S. Securities and Exchange Commission by Cantor Equity Partners, dated May 13, revealed that Tether acquired 4,812 Bitcoins for $458.7 million, averaging $95,320 per Bitcoin.

Cantor Equity Partners carried out the acquisition for Twenty One Capital, a Bitcoin treasury company that Jack Mallers recently introduced.

While the merger process is currently in the approval phase, Twenty One CEO Jack Mallers noted on May 13 that no confirmed date exists for when it will be finalized.

BitcoinTreasuries.net reported that Twenty One trails just behind Strategy and MARA Holdings in corporate Bitcoin ownership, ranking third, with the top two holding 568,840 and 48,237 BTC each.

Formed through a collaboration of Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group, Twenty One Capital, revealed in April, plans to launch through a special purpose acquisition company merger with Cantor Equity Partners.

Upon completion, the company will debut on the Nasdaq under the stock symbol XXI.

The ownership structure will see Tether and Bitfinex as the majority stakeholders, with SoftBank retaining a smaller, minority interest.

In addition to its partnership, SoftBank invested $900 million into Twenty One, a venture led by Strike CEO Jack Mallers.

As mentioned in an April presentation to the SEC, Twenty One plans to outpace Michael Saylor’s Strategy, formerly MicroStrategy, to become the go-to option for capital-efficient Bitcoin exposure.

Read also: Rumble to launch Tether-backed wallet in Q3 according to CEO

With a focus on acquiring Bitcoin, Twenty One has stated that Bitcoin per share will serve as its main success metric, foregoing the usual earnings per share approach.

Before launching, Twenty One is targeting 42,000 Bitcoin.

According to prior filings, Tether will contribute 23,950 Bitcoin, SoftBank will contribute 10,500 Bitcoin, and Bitfinex will contribute roughly 7,000 Bitcoin. They will then convert these into equity at a rate of $10 per share.

The big purchase of Bitcoin follows Tether’s announcement of generating more than $1 billion in revenue for the first quarter.

Tether is one of many large companies that have aggressively purchased BTC this month.

Michael Saylor’s Strategy purchased 13,390 Bitcoin for $1.34 billion, while Metaplanet, a Japanese investment firm, expanded its BTC treasury by 1,241 coins, surpassing El Salvador’s holdings as of May 12.

As per Google Finance data, Cantor Equity Partners’ (CEP) stock price climbed from $10.65 to $59.73 on May 2, but it has since settled at $29.84.

The recent purchase led to a 5.2% increase in CEP’s after-hours stock price.