Tether spends $459 million to increase its Bitcoin holdings, helping Twenty One Capital become the third largest BTC holder among companies

Stablecoin giant Tether is accelerating its expansion in the Bitcoin ecosystem. According to a document submitted by Cantor Equity Partners to the U.S. Securities and Exchange Commission (SEC) on May 13, Tether purchased $458.7 million worth of Bitcoin for its supported Bitcoin investment company Twenty One Capital, further consolidating the latter's position as a major corporate Bitcoin holder.

Tether purchased 4,812.2 Bitcoins at an average price of $95,319 per Bitcoin and transferred them to a custodial wallet on May 9. The move brought Twenty One Capital's total Bitcoin holdings to 36,312, of which 31,500 were held on behalf of SPAC (special purpose acquisition company) Cantor Equity Partners.

Twenty One Capital is in the approval process for a merger with Cantor Equity Partners, and will be listed on the public market with the stock code "XXI" after the merger is completed. The company is led by Strike CEO Jack Mallers and plans to create a more flexible and efficient capital operation platform through a Bitcoin-centric operating model.

According to data from BitcoinTreasuries.net, the merged Twenty One Capital will become the world's third largest corporate Bitcoin holder after MicroStrategy (Strategy) and Bitcoin mining company MARA Holdings. Strategy currently holds about 568,840 Bitcoins, and MARA Holdings holds 48,237.

Tether is one of the major shareholders of Twenty One Capital and co-invested with cryptocurrency exchange Bitfinex in the company's early construction. It is worth mentioning that the merger was also supported by traditional financial giant Cantor Fitzgerald, which not only served as a sponsor, but also provided financial advisory services and assisted in raising a total of US$585 million in funds.

In addition, Japan's SoftBank (SoftBank) also invested US$900 million in Twenty One Capital, providing a strong endorsement for its development. The company plans to hold 42,000 bitcoins when it goes public, of which Tether is expected to contribute 23,950, SoftBank about 10,500, and Bitfinex about 7,000 bitcoins. These assets will be converted into equity at a rate of $10 per share.

Twenty One Capital made it clear in its roadshow materials submitted to the SEC in April that the company will focus on Bitcoin native operations and use "Bitcoin Per Share" as the core measurement indicator rather than traditional earnings per share (EPS). Its goal is to become the preferred vehicle for investors to obtain "capital efficient Bitcoin exposure" and challenge the leadership of Strategy led by Michael Saylor in this field.

As Bitcoin prices continue to rebound and traditional capital markets' interest in digital assets heats up, Twenty One Capital's Bitcoin concentration strategy may redefine the way companies allocate assets, and may also provide institutional investors with a "purer" Bitcoin investment path.