- Tether-backed firm buys 4,812 BTC for $458.7M amid bullish market.
- Twenty One Capital becomes the 3rd largest corporate Bitcoin holder.
- CEP shares surge 460% as Bitcoin purchase boosts market confidence.
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 as part of a larger business merger with Cantor Equity Partners (CEP). The company acquired the BTC at an average price of $95,319.83 each.
This transaction makes Twenty One Capital the third-largest corporate Bitcoin holder, just behind companies like MicroStrategy and MARA. The transaction raises the firm’s holdings to a total of 36,312 BTC. The merger, connected to a Special Purpose Acquisition Company (SPAC) deal with CEP, will be completed in the next few months.
CEP Stock Surges After News of BTC Acquisition
The purchase also shows Tether’s key role in corporate Bitcoin investments. Tether put the 4,812 BTC in an escrow wallet before the assets were transferred 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.
The share price of CEP jumped by more than 460% after this BTC acquisition announcement. CEP’s stock increased from $10.65 to $59.73 in the last 24 hours before it settled at $29.84. The increase in share price shows that investors are confident about the company’s growth in Bitcoin.
Twenty One Capital Eyes More Bitcoin Purchases
Twenty One Capital uses a similar approach to MicroStrategy and intends to offer the most efficient BTC exposure to investors. Jack Mallers, the founder of Strike and the firm’s leader, seeks to make the company a major player in the Bitcoin investments space. The company is mainly owned by Tether and Bitfinex, while Japanese investment group SoftBank holds a minority stake.
After the merger, Twenty One Capital’s BTC holdings are expected to rise to 42,000 BTC. The firm’s growth will be funded by Tether, SoftBank, and Bitfinex. The company is set to turn these holdings into shares worth $10 each when it goes public.
Bitcoin maintains its upward movement despite the unpredictability of the stock. Analysts continue to pay close attention to the price of BTC, as it approaches its all-time high. BTC currently trades around $103,540. The current rise in Bitcoin’s price indicates a positive future outlook for the cryptocurrency, as companies like Twenty One Capital expand their positions.
Related Reading | Binance Data Signals XRP Breakout as Sellers Face Absorption