Tether Buys 4,812 BTC to Fund Cantor Equity Partners Merger Deal

Tether-backed Bitcoin investment firm Twenty One Capital recently finalized the acquisition of 4,812 BTC, valued at $458.7 million, as indicated in a May 13 U.S. Securities and Exchange Commission (SEC) filing.

This strategic maneuver forms an integral component of a private investment in public equity (PIPE) arrangement, closely associated with the firm’s ongoing special purpose acquisition company (SPAC) merger with Cantor Equity Partners.

Tether Purchase BTC to Fund Merger Deal

The stablecoin issuer, Tether, executed the transaction, which initially transferred the BTC to an escrow wallet on May 9. Subsequently, the Bitcoin was transferred to a wallet under Tether’s control and is slated to be sold to Twenty One Capital for those above $458.7 million.

Notably, the newly acquired BTC amplifies Twenty One Capital’s total Bitcoin holdings to 36,312 BTC. Cantor Equity Partners holds 31,500 BTC of this total on behalf of the company, a detail explicitly disclosed in the SEC filing.

The transfer is inextricably linked to a PIPE arrangement connected with the company’s SPAC merger with Cantor Equity Partners. Upon the definitive completion of the merger, the company will operate under the ticker symbol XXI, replacing its current designation as CEP. Cantor Fitzgerald, a prominent Wall Street firm, backs the SPAC.

Shares of Cantor Equity Partners (CEP) experienced marked volatility in the wake of the news surrounding the BTC purchase. Following the recent filing, the stock recorded an additional 5.2% gain in after-hours trading, underscoring the market’s dynamic response.

Twenty One Capital Holdings Increases

Notably, Twenty One Capital now ranks as the third-largest corporate holder of BTC, superseded only by MicroStrategy (568,840 BTC) and MARA Holdings (48,237 BTC). The firm’s distinctive investment strategy centers on evaluating performance through a metric of Bitcoin per share, rather than conventional earnings per share (EPS).

Jack Mallers, who started the Bitcoin payment app Strike, runs Twenty One Capital. The company invests mainly in Bitcoin, which is similar to Michael Saylor’s Strategy. In April, the company told the SEC it wanted to be the best way to invest in Bitcoin efficiently.

Tether and Bitfinex own most of the company’s larger shares. Moreover, SoftBank, a prominent Japanese investor, has invested $900 million and now owns a smaller part. Cantor Fitzgerald is helping with the deal and has raised $585 million to buy more Bitcoin in the future.

Twenty One Capital’s purchase occurs as Bitcoin’s price rises significantly, reaching about $103,540. This puts Bitcoin close to its highest price ever, and market experts are watching closely to see if it will break through that record.

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