Tether has purchased $459 million in Bitcoin to help establish a new company, Twenty One, through a merger with Cantor Equity Partners. The acquisition comprises 4,812.22 BTC, which will be transferred to Twenty One post-merger. The firm aims to launch with over 42,000 Bitcoin, also offering lending services. Tether’s recent revenue and strategic moves highlight growing confidence in Bitcoin’s value.
Tether has made a significant investment, purchasing nearly $459 million in Bitcoin. This acquisition is part of the preparation for Twenty One, a new company set to go public via a merger with Cantor Equity Partners. According to an SEC filing, the stablecoin firm acquired 4,812.22 BTC at an average cost of about $95,319.83 per coin. Upon finalising the merger, this cryptocurrency will be passed to Twenty One at the same price.
Twenty One, which will be co-developed by Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group, aims to launch with a staggering treasury of over 42,000 Bitcoin, amounting to roughly $4.4 billion based on current values. The announcement has been in the works since April, and this ambitious project is entering the market during an interesting time.
Bitcoin’s value has seen a bounce back recently, surpassing $104,000. This move represents a mere 4% dip from its all-time high of $108,786, following reports that the U.S. and China are planning to relax several tariffs that had recently impacted the crypto markets negatively. Several firms are now securing their assets in Bitcoin, reflecting a growing trend amid fluctuating market conditions.
Tether’s expenditure comes on the heels of the company reporting over $1 billion in revenue during the first quarter, providing them with ample resources to further their ventures. With Twenty One, there’s also a plan to introduce Bitcoin lending alongside other financial offerings, making it more versatile in the crypto market.
The structure of Twenty One will see Tether and Bitfinex as majority owners, while SoftBank will have a minority stake. Leadership will be under Jack Mallers, who is the CEO of the Bitcoin payment company, Strike. Mallers aims to raise approximately $600 million through the sale of convertible senior notes and via private equity investments.
The funds generated are intended for further Bitcoin acquisitions and general operational costs. Once the merger is executed, the company’s shares will trade under the ticker XXI on Nasdaq.
This story has been updated to include additional insights after its initial release.
