Bitcoin investment firm Twenty One Capital expands its cryptocurrency holdings with a major new acquisition.

Twenty One Capital has expanded its cryptocurrency holdings with a major new acquisition. The company added 4,812 Bitcoin to its treasury through a transaction executed by its major backer, Tether.

Bitcoin investment firm Twenty One Capital has expanded its cryptocurrency holdings with a major new acquisition. The company added 4,812 Bitcoin (BTC) to its treasury through a transaction executed by its major backer, Tether.

The purchase, valued at approximately $458.7 million, was revealed in a May 13 filing with the US Securities and Exchange Commission (SEC). The Bitcoin was acquired at an average price of $95,319 per token on May 9.

The transaction involved Tether transferring the newly purchased Bitcoin to an escrow wallet. This forms part of a private investment in public equity (PIPE) arrangement tied to Twenty One Capital’s ongoing Special Purpose Acquisition Company merger.

This aligns with the company’s unique performance measurement system, where shares will be valued based on their Bitcoin equivalence at a rate of one share for 0.25 Bitcoin.

When the merger completes, Twenty One Capital will trade under the ticker symbol "XXI" on public markets. Currently, it trades as CEP (Cantor Equity Partners).

The market has reacted strongly to the news of the Bitcoin purchase. CEP shares experienced extreme volatility, surging from $10.65 to $59.73 before settling at $29.84.

After the recent SEC filing was made public, the stock gained an additional 5.2% in after-hours trading. This demonstrates the market’s sensitivity to Bitcoin-related corporate actions.

According to earlier filings, Twenty One Capital aims to debut with at least 42,000 Bitcoin in its treasury. The plan calls for Tether to contribute 23,950 BTC, SoftBank to provide 10,500 BTC, and Bitfinex to supply around 7,000 BTC.

These Bitcoin holdings will be converted into company shares at a price of $10 each. This structure aligns with the firm’s goal of measuring performance through “Bitcoin per share” rather than traditional metrics.

At the helm of Twenty One Capital is Jack Mallers, founder of the Bitcoin payments application Strike. Mallers has been a vocal advocate for Bitcoin adoption and has worked extensively on Lightning Network payment solutions.

Last month, PayTogether, a major payment processing company, announced integration with the Strike network, showcasing the application’s potential for mainstream use cases.

The integration will enable seamless Bitcoin payments for PayTogether’s vast merchant network across the US, covering sectors like food, retail, and entertainment.

This partnership underscores the increasing interest in cryptocurrency payment solutions as major institutions seek to expand their offerings in the evolving financial landscape.