Tether Drops $459M on Bitcoin to Supercharge Its New Company, Twenty One

Tether, the powerhouse behind the largest stablecoin by market cap, has just made a bold move — dropping a staggering $459 million

In a move that underscores the burgeoning presence of institutions in the crypto sphere, Tether—best known for its flagship stablecoin, Tether (USDT), the largest by market cap—is making a sizable investment in Bitcoin (BTC) to launch its new company, Twenty One.

This venture, a merger of Cantor Fitzgerald-led SPAC with Bitrex's exchange and Tether, will be fully operational by Q4 2023.

The crypto behemoth is making a significant contribution of 4,812.22 bitcoins, valued at $459 million, to kickstart the treasury of this upcoming financial entity.

The new company, which plans to list on Nasdaq with the ticker XXI, is also aiming to raise an additional $600 million in convertible bonds and private equity.

A heavyweight team is also joining forces for this new venture, receiving commitments from SoftBank and Cantor Fitzgerald.

After merging with Cantor Equity Partners, the company will transfer the bitcoins to Twenty One at cost, which comes to around $95,319.83 per bitcoin.

Moreover, Tether and Bitfinex will retain a majority stake, while SoftBank will hold a minority share in the new entity.

The company aims to build a treasury of 42,000 BTC, which would be valued at around $4.4 billion at current prices and instantly make Twenty One one of the biggest corporate holders of bitcoin globally.

Along with bitcoin lending and other advanced financial products, Twenty One will offer a suite of institutional services.

To fund this next phase, the company plans to raise another $385 million through convertible bonds and $200 million via private equity, which will be used to expand operations and bolster BTC reserves.

These efforts will lay the groundwork for a scalable, service-driven model that speaks Wall Street’s language and expands on the vision for a decentralized financial future.

This strategic move comes at a time when bitcoin is holding steady around the $104,000 mark, just shy of its all-time high.

The market has been buoyed by improving US-China trade ties, renewing interest in crypto assets.

Furthermore, the U.S. is expected to exhaust its debt ceiling by early December, setting the stage for another round of negotiations.

This news comes after a report by Glassnode revealed that MicroStrategy now holds nearly $60 billion in BTC following a recent purchase.

Other institutions, including Marathon Digital and Semler Scientific, have also been actively accumulating bitcoin.

In a separate development, Metaplanet, a company focused on developing the metaverse, has announced a significant investment of 10,000 ETH in the metaverse project.