Twenty One Capital, a Tether-Backed Investment Firm, Purchased 4,812 Bitcoins for $458.7M

Twenty One Capital, a Tether-backed investment firm, purchased 4,812 Bitcoin for $458.7 million. The deal was revealed on May 13 via a U.S. SEC filing

Twenty One Capital, a Tether-backed investment firm, has purchased 4,812 Bitcoin (BTC) for $458.7 million, according to a recent U.S. Securities and Exchange Commission (SEC) filing on May 13.

The transaction was part of a larger business combination between Cantor Equity Partners (NYSE: CEP) and an unnamed company, which is merging with a Special Purpose Acquisition Company (SPAC).

The investment firm acquired the BTC at an average price of $95,319.83 each. Following this transaction, Twenty One Capital is now the third-largest corporate Bitcoin holder, after MicroStrategy (NASDAQ: MSTR) and MARA.

This transaction will increase the firm’s BTC holdings to a total of 36,312. The merger, which is linked to a SPAC deal with Cantor Equity Partners, is expected to be completed within the next few months.

CEP Stock Soars After BTC Acquisition Announcement

The purchase also highlights Tether’s role in corporate Bitcoin investments. Tether placed the 4,812 BTC into an escrow wallet before the assets were credited to the firm’s digital wallet. The transaction is part of a Private Investment in Public Equity (PIPE) agreement, with convertible notes and equity subscriptions expected to provide the funds.

Shares of Cantor Equity Partners surged more than 460% after the BTC acquisition was announced. The stock price increased from $10.65 to a high of $59.73 in the past 24 hours before settling at $29.84.

This surge in share price may indicate investor confidence in the company’s growth in Bitcoin.

Twenty One Capital May Make More Bitcoin Purchases

In addition to this recent purchase, Twenty One Capital is planning to acquire more BTC in the coming months. The company is using a similar approach to MicroStrategy, and it intends to offer investors the most efficient exposure to Bitcoin.

Jack Mallers, the founder of Strike and the leader of the firm, is aiming to make the company a major player in the Bitcoin investments space.

The company, which is mainly owned by Tether and Bitfinex, also has a minority stake from Japanese investment group SoftBank. After the merger, Twenty One Capital’s BTC holdings are expected to increase to 42,000. The company’s growth will be funded by Tether, SoftBank, and Bitfinex.

The firm is reportedly going public with these Bitcoin holdings, which will be valued at $10 for each share.

Bitcoin continues its upward movement despite the volatility in the stock market. As the price of BTC approaches its all-time high, analysts are following its price.

Currently, BTC is trading around $103,540. This surge in Bitcoin’s price may suggest a positive future outlook for the cryptocurrency as companies like Twenty One Capital expand their positions.