Twenty One Capital, a Tether-backed investment firm, has made headlines by acquiring 4,812 Bitcoin (BTC) worth $458.7 million. This acquisition was according to a recent SEC filing. This significant purchase is part of a private investment in public equity (PIPE) deal. It is tied to its ongoing SPAC merger with Cantor Equity Partners, a subsidiary of Wall Street giant Cantor Fitzgerald.
A Strategic Move to Expand Bitcoin Holdings
The newly acquired Bitcoin was purchased at an average price of $95,319 per BTC and transferred to an escrow wallet on May 9. Tether later moves the BTC to its wallet before handing it over to Twenty One Capital. This acquisition brings the firm’s total Bitcoin holdings to 36,312 BTC. Of these, Cantor Fitzgerald currently holds 31,500 BTC in custody.
“The company aims to hit 42,000 BTC before its public launch, with more contributions expected from Tether, SoftBank, and Bitfinex,” the filing noted.
Once the merger is finalized, Twenty One Capital plans to go public under the ticker “XXI”. Currently, it is trading under “CEP.” The firm’s Bitcoin-focused strategy mirrors that of MicroStrategy. Meanwhile, Tether and Bitfinex hold the majority stake, while SoftBank has invested $900 million.
Market Reactions and Growing Confidence in Bitcoin
The announcement sparked immediate market reactions, with CEP shares surging 5.2% in after-hours trading. This move positions Twenty One Capital as the third-largest corporate Bitcoin holder, trailing only MicroStrategy and MARA.
Led by Jack Mallers, the founder of Strike, the firm’s focus on Bitcoin underscores growing institutional confidence. This confidence is in the cryptocurrency’s long-term value. Analysts attribute this optimism to macroeconomic factors such as lower inflation and an expanding money supply. These factors could propel Bitcoin to surpass $120,000 by the end of May.
Bitcoin is currently trading near $103,540, approaching its all-time high, signaling strong investor sentiment.
What This Means for Bitcoin’s Future
Twenty One Capital’s substantial Bitcoin purchase reflects a broader trend of institutional adoption and investment in digital assets. By targeting 42,000 BTC before its public debut, the firm is positioning itself as a major player in the Bitcoin ecosystem.
This development also highlights the growing synergy between traditional finance and the crypto space. This is evident with backing from heavyweights like Tether, SoftBank, and Cantor Fitzgerald. Such partnerships not only validate Bitcoin’s role as a store of value but also pave the way for greater mainstream acceptance.
Final Thoughts
The acquisition marks a significant milestone in the ongoing institutional embrace of cryptocurrencies. With its sights set on accumulating 42,000 BTC , the firm is poised to make waves as it prepares for its public launch under the ticker “XXI.” As Bitcoin continues to gain traction amid favorable economic conditions, moves like these signal a new era of confidence and adoption in the digital asset space.
