Tether-supported Twenty One Capital Purchases $458.7M in Bitcoin as the Price Hits a New High
Twenty One Capital, a Bitcoin investment firm sponsored by Tether, reported on May 13 that it had purchased 4,812 BTC for $458.7 million. In connection with the company’s ongoing SPAC merger with Cantor Equity Partners, the transaction represents a component of a private investment in public equity (PIPE) agreement.
Bitcoin is currently trading at about $103,540, and this acquisition coincides with price fluctuations that point to a possible new all-time high.
Twenty One Capital Bitcoin Acquisition Linked to SPAC Merger
Stablecoin issuer Tether completed the transaction and sent the Bitcoin to an escrow wallet on May 9. Later, the Bitcoin was transferred to a Tether-controlled wallet, and it would be sold for $458.7 million to Twenty One Capital, a public company.
A PIPE agreement related to the company’s SPAC merger with Cantor Equity Partners includes this transfer. The company will trade under the ticker XXI after the transaction is complete. The Wall Street business Cantor Fitzgerald supports the SPAC, which is now traded under CEP.
Twenty One Capital now owns 36,312 BTC in total thanks to the recent acquisition. Cantor Equity Partners holds 31,500 BTC of this total on behalf of the business, as revealed in the SEC filing.
Company Positioning and Ownership Structure
Jack Mallers, the creator of the Bitcoin payments software Strike, is in charge of Twenty One Capital. Like Michael Saylor’s Strategy, the company has embraced a Bitcoin-focused approach. The company stated to the SEC in April that it wants to develop into a “superior vehicle” for capital-efficient Bitcoin exposure.
The corporation is mostly owned by Tether and Bitfinex, its sibling company. SoftBank, a Japanese investment corporation, has made a $900 million investment and owns a minority ownership. In addition to being the merger’s sponsor and advisor, Cantor Fitzgerald has raised $585 million to finance more Bitcoin acquisitions.According to filings, the company’s goal is to reach 42,000 BTC in total holdings upon its public launch. Expected contributions include 23,950 BTC from Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex. These will be converted into equity at $10 per share.
Trading Activity and Market Reaction
Following the announcement of the Bitcoin purchase, Cantor Equity Partners’ (CEP) stock saw significant volatility. Before dropping down to $29.84 on May 2, the share price increased from $10.65 to $59.73. The stock increased 5.2% in after-hours trading following the new filing.
Twenty One Capital is currently the third-largest corporate Bitcoin holder, after MARA Holdings (48,237 BTC) and MicroStrategy (568,840 BTC), according to BitcoinTreasuries.net. Instead of utilizing earnings per share to gauge performance, the company uses Bitcoin per share.
Other businesses are also expanding their reach; on Monday, the Japanese company Metaplanet added 1,271 Bitcoin for $126.7 million.
The Price of Bitcoin Is Approaching a New All-Time High
The acquisition by Twenty One Capital comes as the price of Bitcoin is on a sharp rise, having risen to almost $103,540. As a result, the cryptocurrency is now within range of its prior peak. Analysts are keeping a close eye out for a breakout.
Market expert Michaël van de Poppe wrote on X that recent Consumer Price Index (CPI) data revealed lower-than-expected inflation. “As inflation slows down, the Federal Reserve may be able to reduce interest rates,” he stated. He asserts that this setting may produce advantageous circumstances for the cryptocurrency’s subsequent ascent to a new all-time high.
ColinTCrypto, another researcher, also mentioned the continuous relationship between Bitcoin and the global M2 money supply. He said that the current cycle is similar to patterns observed earlier in the year, when between April 8 and mid-May, Bitcoin increased from $76,000 to $105,000, approaching its all-time high of $109k. According to him, Bitcoin is “still right on track with Global M2,” and by the end of May, it might break above $120,000 to reach a new all-time high.
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