Twenty One Capital Makes Its First Move by Acquiring 4812 BTC

Twenty One Capital, an investment firm focused on Bitcoin, has begun its treasury build-up with an initial acquisition of 4,812 BTC for $458.7 million.

This positions the company among the largest public firms holding Bitcoin and marks the start of a planned series of acquisitions to bolster its Bitcoin-focused treasury model.

What Happened: Twenty One Capital will acquire the Bitcoin through a private investment in public equity (PIPE) transaction.

* Tether, which co-founded Twenty One Capital, will initially purchase the BTC and store it in a segregated wallet.

* Upon the merger’s closing, Tether will transfer the Bitcoin to Twenty One Capital at the same price it was purchased for.

The company is being formed via a special-purpose acquisition company (SPAC) merger with Cantor Equity Partners (NYSE: CEP).

Twenty One will trade on Nasdaq under the ticker “XXI” once the merger is finalized. Until then, Cantor will continue to trade on the New York Stock Exchange.

$459M Purchase Seals Treasury Strategy: The 4,812 BTC was bought by Tether at an average price of $95,319.83 and will be used for the upcoming PIPE transaction.

Following the PIPE deal’s closure, the coins will be transferred to Twenty One Capital.

The PIPE structure includes $385 million in convertible senior secured notes and $200 million in common equity funding, which will provide the financial basis for Twenty One’s initial Bitcoin acquisition and future treasury build-up.

After the transaction, Twenty One Capital is set to hold over 42,000 BTC, valued at approximately $4.4 billion at current market prices. This will place the firm among the top public Bitcoin holders worldwide.

Tether, Bitfinex, and SoftBank Form Company: Tether and its sister company Bitfinex are the majority shareholders in Twenty One Capital, while SoftBank Group has a minority stake.

This brings together the liquidity of a stablecoin firm, the exchange infrastructure of a cryptocurrency exchange, and the capital of a private equity firm.

Jack Mallers, founder of the Bitcoin payments firm Strike, will lead Twenty One as CEO.

The firm also plans to offer Bitcoin lending and other crypto-financial services, and it will use Bitcoin ownership per share as a key performance metric.

Aiming to be a Bitcoin-native financial institution, Twenty One plans to launch products that align with Bitcoin’s monetary framework and capital market dynamics.

These products will include lending instruments, structured notes, and corporate services, all focused on Bitcoin.

Bitcoin Price Reaches New Highs as Launch Nears: Bitcoin’s price recently climbed to $104,356.21, just 4% below its all-time high of $108,786. The 24-hour trading volume decreased by 19.53%.

This price surge showcases the cryptocurrency’s resilience and potential for further growth.

With its unique treasury model and capital structure, Twenty One Capital is poised for rapid BTC accumulation. The firm’s first purchase signals aggressive intent and a long-term bullish outlook.

Its listing under the ticker XXI will mark a significant addition to the stock market and a new milestone for public companies operating within the cryptocurrency sector.