Tether acquired 4,812 BTC worth $459M to support the launch of Bitcoin-focused firm Twenty One Capital.
The new company plans to offer public stock exposure to Bitcoin, targeting over 42,000 BTC in holdings.
Backed by Cantor Fitzgerald and led by Jack Mallers, the venture aims to merge institutional finance with the crypto world.
On May 9, 2025, Tether, the issuer of the USDT stablecoin, executed a significant Bitcoin acquisition, purchasing 4,812.22 BTC at an average price of $95,319.83 per coin, totaling approximately $458.7 million. This strategic move was made on behalf of Twenty One Capital, a Bitcoin-focused investment firm backed by Tether, which is preparing to go public through a Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners.
The primary goal of this substantial Bitcoin purchase is to establish Twenty One Capital as a leading Bitcoin treasury company. By transferring the acquired BTC into an escrow wallet, Tether aims to provide a robust foundation for Twenty One Capital's operations, positioning it as a significant player in the institutional Bitcoin investment space.
Twenty One Capital plans to offer traditional investors exposure to Bitcoin through publicly traded shares, eliminating the need for direct cryptocurrency handling. This approach is designed to attract a broader investor base, including those who may be hesitant to engage directly with digital assets.
To support its ambitious goals, Twenty One Capital is seeking to raise approximately $585 million, comprising $385 million from convertible senior notes and an additional $200 million from private equity sources. These funds are intended to facilitate further Bitcoin acquisitions and to expand the company's operations.
The company aims to commence operations with over 42,000 BTC on its balance sheet, valued at around $4.4 billion at current market prices. This substantial holding would position Twenty One Capital among the largest corporate Bitcoin holders globally, comparable to entities like MicroStrategy.
Jack Mallers, known for his role as CEO of Strike, has been appointed as the CEO of Twenty One Capital. His leadership is expected to bring valuable experience and credibility to the venture. The company's formation involves notable financial entities, including Cantor Fitzgerald, SoftBank, and Bitfinex, reflecting a strong network of strategic partnerships.
Tether's investment in Bitcoin through Twenty One Capital signifies a deepening integration between traditional finance and the cryptocurrency sector. By facilitating institutional access to Bitcoin investments, this move could contribute to increased adoption and legitimacy of digital assets in mainstream financial markets.
However, the concentration of significant Bitcoin holdings within a single entity also raises considerations regarding market influence and the potential impact on Bitcoin's price stability. As Twenty One Capital progresses towards its public listing, regulatory scrutiny and investor interest are likely to intensify, shaping the future dynamics of institutional cryptocurrency investments.
Tether's $459 million Bitcoin acquisition for Twenty One Capital represents a strategic initiative to bridge the gap between traditional financial markets and the burgeoning cryptocurrency ecosystem. By establishing a publicly traded Bitcoin treasury company, Tether aims to provide institutional investors with streamlined access to digital assets, potentially setting a precedent for similar ventures in the future.