Tether Buys $459M in Bitcoin, Fuels Mallers’ Mega BTC Bet

Key Insights:

• Tether buys 4,812 BTC for Twenty One Capital’s treasury strategy.
• Twenty One now ranks third in corporate Bitcoin holdings globally.
• Cantor Equity stock surged after SEC filing revealed massive BTC purchase.

Tether has acquired $458.7 million worth of Bitcoin (BTC) for Twenty One Capital, a Bitcoin-native investment firm founded by Strike CEO Jack Mallers. The deal, revealed through a U.S. Securities and Exchange Commission (SEC) filing on May 13, adds 4,812 BTC to Twenty One’s treasury.

Cantor Equity Partners, which is managing Twenty One’s stock under a pending SPAC (Special Purpose Acquisition Company) merger, confirmed the purchase. Each Bitcoin was bought at an average price of $95,319 and transferred to an escrow wallet on May 9.

The deal brings Twenty One Capital’s total BTC holdings to 36,312, placing it third among public firms by Bitcoin reserves, behind MicroStrategy and Marathon Digital Holdings.

Third-Largest Public BTC Holder Emerges With Backing from Tether, SoftBank

Twenty One Capital is structured to become a publicly traded firm through a $3.6 billion SPAC merger with Cantor Equity Partners. The merger, once finalized, will see the firm trade under the ticker “XXI.” Cantor Fitzgerald, a major Wall Street player, is sponsoring the deal and has secured $585 million in funding to support the firm’s Bitcoin accumulation strategy.

Tether, which owns a controlling stake in Twenty One Capital alongside crypto exchange Bitfinex, has taken a central role in shaping the firm’s treasury. According to previous filings, Tether plans to contribute a total of 23,950 BTC.

SoftBank, a Japanese investment giant, has backed the venture with $900 million, while Bitfinex expects to convert 7,000 BTC into equity at $10 per share.

Jack Mallers, known for his maximalist stance on Bitcoin and his work with the Strike payments app, leads Twenty One Capital. The firm focuses on pure-play Bitcoin exposure for institutions seeking a capital-efficient entry into BTC.

Bitcoin Per Share, Not Earnings Per Share

In its April investor presentation filed with the SEC, Twenty One Capital stated it will use “Bitcoin per share” as its core performance metric rather than traditional earnings. The company aims to present itself as a superior alternative to MicroStrategy’s Bitcoin treasury model.

“Our aim is to become the most capital-efficient vehicle for Bitcoin exposure,” Mallers said in a May 13 update, noting the merger process is underway though no closing date has been set.

Twenty One positions itself as a Bitcoin-native firm offering institutional-grade exposure without the distractions of broader crypto markets. Unlike MicroStrategy, which leveraged corporate debt to build its position, Twenty One combines equity investment, PIPE deals, and advisory partnerships to fuel its BTC expansion.

SPAC Hype Sends Cantor Shares Soaring

The SPAC sponsor, Cantor Equity Partners, has already seen investor enthusiasm priced in. On May 2, CEP shares surged from $10.65 to $59.73 before retracing to $29.84. In after-hours trading, the stock climbed another 5.2% following news of the Tether-funded purchase.

Market observers have compared Twenty One Capital’s trajectory to MicroStrategy’s early Bitcoin pivot, though with a more diversified funding model. Twenty One’s April SEC presentation emphasized the company’s vision to overtake MicroStrategy as the go-to public Bitcoin vehicle.

According to data from BitcoinTreasuries.net, the firm now ranks third in terms of Bitcoin holdings among public companies. MicroStrategy leads with 214,400 BTC, followed by Marathon Digital with 48,237 BTC.

Institutional Bitcoin Demand Intensifies Ahead of XXI Launch

The firm’s Bitcoin purchases, made under a PIPE arrangement, signal mounting institutional interest in direct BTC exposure. The PIPE structure allowed Twenty One to access Bitcoin through a private placement deal, with Tether initially holding the coins in escrow before transferring them.

“The strategy is simple,” one source close to the deal noted. “Raise capital, acquire BTC, and create shareholder value measured in Bitcoin.”

The company’s roadmap targets 42,000 BTC by the time the XXI ticker goes live. With 36,312 BTC already in place, further purchases are likely.

Twenty One Capital’s debut has turned heads across financial and crypto sectors alike. Whether it ultimately surpasses MicroStrategy in reach and influence remains to be seen, but with Tether, SoftBank, and Cantor Fitzgerald on board, it enters the market with momentum.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.