Tether buys $459M worth of Bitcoin for Twenty One Capital
Tether, one of the world's largest stablecoin issuers, recently purchased Bitcoin worth $459 million for Twenty One Capital. As part of this investment, Tether has purchased a total of 4,812 Bitcoins, which are now held in an escrow wallet. The purchase comes as Twenty One Capital is in the process of merging with Cantor Equity Partners through a SPAC (Special Purpose Acquisition Company) and Tether is involved as a key partner in the growth and structure of this company. With this move, Tether and Twenty One Capital have further strengthened their position in the Bitcoin market and presented it as an attractive asset for investors.
The company reached third place in Bitcoin holdings
After this transaction, Twenty One Capital's total Bitcoin holdings have increased to 36,312 BTC. Of this, 31,500 Bitcoins are held by Cantor Equity Partners. According to BitcoinTreasuries.net, the company has now become the third largest corporate Bitcoin holder in the world, behind only Strategy and MARA Holdings.
At the same time, after the completion of the merging process, Twenty One Capital will have the trading name XXI and will have a total of 36,312 Bitcoins. Cantor Equity Partners holds 31,500 Bitcoins, while Tether has planned a supply of 23,950 Bitcoins. This move proves that Twenty One Capital aims to increase its Bitcoin asset and provide investors with more capital efficient Bitcoin exposure.
Twenty One Capital aims to leave MicroStrategy behind
Twenty One Capital is aiming to give its investors "capital-efficient exposure" to Bitcoin. The company believes that it will become a better investment vehicle by leaving MicroStrategy behind. Twenty One Capital told the SEC in a presentation that it will set its main criteria as "Earnings per Bitcoin" while other companies use the traditional "Earnings per Share".
The company also said that it aims to reach 42,000 Bitcoins by the time of its launch. For this, a total of about 41,000 Bitcoins has been planned from Tether, SoftBank and Bitfinex. Apart from this, Cantor Fitzgerald contributes as a financial consultant to the company and is raising $585 million in funding to support Twenty One Capital's Bitcoin investment.
Conclusion
This new investment by Twenty One Capital could prove to be a major strategic move for Tether, especially since the company has decided to adopt the criteria of shares on Bitcoin. The company's goal is not only to become rich in Bitcoin, but it also wants to ensure that its investors also invest in this digital asset in an effective and capital efficient manner. With this, once the SPAC merging process is completed, Twenty One Capital's name will appear as XXI and it can emerge as a major player in the field of Bitcoin investment.