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Tether has just acquired nearly half a billion dollars in bitcoin as part of a major strategic operation. This transaction paves the way for the launch of Twenty One, a new Bitcoin treasury company preparing to enter the Nasdaq via a SPAC merger. A move that could redefine institutional crypto management standards.
In Brief
- Tether acquired 4,812.22 bitcoins for 458.7 million dollars, destined for Twenty One.
- The company will target a treasury of 42,000 BTC (4.4 billion dollars) after its Nasdaq listing.
- Jack Mallers, CEO of Strike, will lead this company born from a partnership between Tether, Bitfinex, Cantor Fitzgerald, and SoftBank.
- Twenty One will offer innovative financial services, including bitcoin lending.
Tether Buys 459 Million Dollars in Bitcoin to Fund a Treasury Company
On Tuesday, May 13, a document filed with the SEC revealed the scale of the operation. Tether acquired 4,812.22 bitcoins at a unit price of 95,319.83 dollars, for a total investment of 458.7 million dollars. This acquisition forms the cornerstone for the launch of Twenty One.
These bitcoins will be transferred to Twenty One after the completion of its SPAC merger with Cantor Equity Partners. This operation will allow the company to access the Nasdaq under the symbol XXI. The bitcoins will be sold at the initial purchase price, without capital gains, demonstrating the strategic nature of the investment.
Twenty One is the result of a collaboration between sector giants: Tether, Bitfinex, Cantor Fitzgerald, and SoftBank Group. The company aims to transform institutional management of digital assets with innovative services like bitcoin lending. Tether and Bitfinex will hold a majority stake, with SoftBank retaining a minority share.
The initial treasury planned of 42,000 BTC – about 4.4 billion dollars at current prices – will immediately position Twenty One among the leading institutional holders of Bitcoin. Jack Mallers, currently CEO of Strike, will take on the leadership of this new entity.
The operation benefits from a favorable context. Bitcoin maintains its strength around 104,000 dollars, just 4% below its all-time high of 108,786 dollars. The improvement of US-China trade relations has contributed to the crypto markets’ rebound this week.
An Innovative Business Model to Attract Institutions
Twenty One will develop a comprehensive ecosystem around bitcoin. Beyond storage, the company will offer lending services in BTC and other sophisticated financial products aimed at institutional investors.
To finance its expansion, the company plans to raise an additional 600 million dollars: 385 million through convertible bonds and 200 million in private equity. These funds will primarily be used to increase bitcoin reserves and develop operational activities.
This strategy aligns with a growing trend of institutional accumulation. Strategy holds nearly 60 billion dollars in bitcoin, while Marathon Digital, Semler Scientific, and Metaplanet have adopted similar approaches. Twenty One’s entry amplifies this movement, confirming bitcoin’s evolution toward a recognized reserve asset.
Tether’s investment in Twenty One marks a crucial step in the institutionalization of bitcoin. As the queen of cryptos becomes a central element of corporate treasury strategies, the line between traditional finance and digital markets continues to blur.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
